In a bad economy it does not take much to find yourself unable to pay your bills. A loss of job, medical problems, or divorce can plummet you right into financial disaster. You may not know what to do when the threatening phone calls begin. In fact, you may feel that you have no recourse at all. Luckily, there are options available to you. In some cases you may be able to negotiate lower payments by calling and speaking to your creditors. You may also be able to take out a debt consolidation loan that will allow you to pay off all of your debt, leaving you with one lower monthly payment. Those options are not without their disadvantages. For instance, lowering your monthly payments will extend the length of time you are in debt, and a debt consolidation loan may make it enticing to accrue further debt once your old debt is paid off.
When you find yourself unable to pay your bills and you have no other options available to you, it may be time to speak to the Rapa Law Office, P.C. about Bankruptcy. You may be able to file for a chapter 7 or a chapter 13 Bankruptcy. With bankruptcy protection, your debt will be forgiven and you will have a fresh start once the process is completed. With Chapter 7, you will have to forfeit all of your nonexempt personal property, including your home, cars and jewelry, but all of your debt will be forgiven. A Chapter 13 bankruptcy filing will allow you retain ownership of all your personal and real property, however, you will be required to pay back at least a portion of your debt. In most cases, the court will require you to make monthly payments to a bankruptcy trustee for about three to five years. However, once you have made all of those payments the remaining debt will be forgiven.
If you are considering filing for bankruptcy protection it is important that you speak to an attorney. Your attorney will help you get back on track financially so that you can get the fresh start you need.
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