When you are facing mounting debts you cannot pay off, you fear your wages being garnished and your bank accounts being frozen. You want to get out of debt without putting your finances or assets at risk.
Instead of leaving the debts to pile up and threaten your income and financial security, you can take legal action to deal with them effectively. Your first move might be to hire an experienced bankruptcy attorney where you live.
Learning More About Your Options
When you have a bankruptcy attorney on retainer, you can find out what kind of legal case to file to resolve your debts. If you are a low-income earner or live entirely on Social Security, you may be eligible to file a Chapter 7 bankruptcy. This type of case typically liquidates most or all of your debts once the court discharges them.
However, if you are a higher income earner or would rather pay off your accounts than liquidate them, you may decide to take out a Chapter 13 bankruptcy. This type of case consolidates all of your debts into a single sum. You then pay on that sum over the course of several years until the debts are paid off or the court discharges the remainder of them.
Your bankruptcy attorney can discuss both of these options at length with you. You can then decide what kind of legal action you want to take to deal with your debts and protect your finances.
Completing Debt Counseling Courses
When you have a bankruptcy attorney on retainer, you can also complete debt counseling courses that may be required as part of your court action. Your attorney can advise you on what debt counseling classes to sign up for and complete. He or she can also make sure the court receives your certificate of completion for them.
Finally, your bankruptcy attorney may provide counsel on how to avoid getting into serious debt in the future. He or she may tell you to start saving a portion of your paycheck each month to build an emergency fund. He or she may also advise you to use credit wisely and avoid splurging on impulse buying.
A bankruptcy attorney can help you decide what kind of debt resolution case you should file to liquidate or consolidate your debts. He or she can also provide counsel on avoiding debts in the future and advise you on what court-ordered debt counseling courses to take.
For more information, contact a bankruptcy attorney near you.