Do not be afraid to file for bankruptcy

May 24, 2013 (Press-News.org) Do not be afraid to file for bankruptcy

Article provided by The Law Offices of Elkins & Freedman
Visit us at http://www.elkinsfreedman.com

Most people have expenses that they need to account for each month. They make a budget, so that they can meet these obligations without falling into a difficult financial situation. If they experience any changes to the amount of income coming in, they may need to consider other ways to address their debt concerns. Often, they fail to consider all of the options that may be available to them at this difficult time.

Some individuals may try to work with companies that promise to help reduce the amount of debt that is outstanding. Many organizations offer these services, running television and radio commercials, or sending fliers in the mail. Debtors looking to work with one of these debt relief companies are often made many promises, which can seem like a huge relief to those suffering the strain caused by money problems.

In many cases, these solutions do not work as well as the debtor had hoped. Some may provide short-term debt relief, but it may be just as likely that the debtor ends up in a worse financial position. If the individual does not take steps to address the actual reasons that the debt had accumulated, he or she may be unable to prevent problems in the future.

Many people do not consider the advantages for filing for bankruptcy, because of the impact this may have in other areas of their lives, especially on their credit histories. While bankruptcy will appear on a credit report, filing allows debtors the opportunity to rebuild their finances which will in time help them improve their credit scores.

Those who file for bankruptcy are also protected by an automatic stay, which puts an end to in-process collection actions or other lawsuits by creditors. Collection agencies may be constantly calling or sending threatening letters, which can place a lot of stress on debtors unable to make ends meet. Filing for bankruptcy stops these worries, and help a person get back on track.

When you first start seeing signs that you are having problems paying your bills, you may not know where to turn with the questions that you have. You may think that bankruptcy is the last thing that you want to do, but you should speak to an experienced bankruptcy attorney about your concerns.

An attorney can evaluate your situation, and help you decide the best option for your financial future. If bankruptcy is right for you, the attorney can walk you through the process, and help you understand the things that you need to do to reduce the challenges that you are facing.