Do you spend so much on your credit card that most of the time your credit limit is maxed out? This is a major red flag that sooner or later, you’ll be filing for bankruptcy. Ask any financial expert and they’ll tell you that as much as possible, you must not go beyond 50% of their credit limit. Apart from the fact that you’re spending too much, maximizing on your credit has a very negative impact on your credit score. Creditors will deem you as a high-risk borrower.
It’s not uncommon for a person to get a car loan with a high interest rate and find that several years down the road they still owe well more than the car is worth. A ssi tax attorney near me may be able to assist you in reducing the debt you owe down to fair market value. They’ll assess your situation and give you the particulars, but in general if you’ve owned the vehicle for more than 910 days, a Chapter 13 bankruptcy can reduce the debt to the fair market value and you will owe only what the car is actually worth.
If you have excellent credit, a debt consolidation loan (DCL) may be an ideal option. The most common kind is a credit card balance transfer. This is where you take several debt of varying rates and move them all to one card. You’ll want to find a card that has the lowest interest possible, and make sure you plan to pay more than the minimum amount due. One thing you’ll want to avoid is being late on a payment, as it will send your interest rate sky-rocketing!
Chapter 13 acts as a consolidation loan for debtors. It takes all of the different debts and puts them into a payment plan. A trustee of the court collects the payment and then distributes payments to individual creditors. You will have no direct contact with the companies or people that you own money to that are covered under the Chapter 13 bankruptcy.
Bankruptcy is the last debt relief option that anyone opts for under any condition. It changes one’s life drastically. It offers a wide range of benefits. However, there are complications involved too. Bankruptcy cases imply too many financial aspects and they need to be handled properly.
Bankruptcy is a very complicated process. Many people mistakenly believe that they can do it themselves just as well. That is just not so. Bankruptcy attorneys charge a fee plus court costs and filing fees. In many cases this can be rolled into a payment plan to make it more affordable. It may seem like a lot of money, but it is truly a worthwhile investment. A bankruptcy attorney will save you more than you are paying him by knowing the ins and outs of the system, and how it applies to you.
Aside from learning more about the bankruptcy attorney, you want to know more about your specific case. Your lawyer should be able to give you some idea of how long the process will take and how much it will cost you. You want a number that is as close to exact as possible. It can be devastating to find out that at the end of the day, you owe much more money that you had planned for. This is a result of poor communication or a complete lack of communication. Take responsibility and get this information upfront before moving on.
There truly is a sea of lawyers available in New York, which is only natural with such a large population. Therefore, the chances of you finding a great Bankruptcy lawyer near you are quite high. Being able to get to your lawyer quickly could come in handy if you have a last-minute meeting.
As you can see above, there is no QUICK FIX to your debt problem. You didn’t get into debt overnight and you will not fix your debt problem overnight. By following the plan above, you will conquer your debt in time. The key is to start NOW!!!
