Frequently, during free initial bankruptcy consultations, I spend the majority of my time talking about a potential client’s options outside of bankruptcy. The key step, whether a bankruptcy filing is appropriate or not, is spending time to create a budget.
After you have accurate budget information, I recommend asking yourself whether you would be able to pay off your existing debt within three years. Minimum payments, of course, do not pay down your debt. You may however be able to reduce expenses, increase your income with a second job, or sell some type of asset in order to get on a three year plan.
I never recommend cashing out retirement accounts to pay creditors. These types of account are completely protected, or exempt. Before deciding to do this, contact OnTrack Financial, in Asheville, NC about other consolidation options. They may be able to establish a program to avoid bankruptcy by negotiating a minimal interest regimen with creditors during a payback plan.
Private debt settlement programs very seldomly work. People usually remain in debt during while their program fails, and they very frequently end up getting sued. Even successfully completed programs result in harsh tax consequences. Worse yet, many of the companies or “law firms” promoting the services end up being the only winners.
Lastly, avoiding bankruptcy is a lot easier when armed with good information. Consulting an experienced bankruptcy attorney may be the key ingredient to preventing a bankruptcy from happening. For those of you in Western North Carolina, I would be pleased to speak with you during a free consultation.
*The information contained on this website is not intended and does not constitute the providing of any legal advice or any legal opinions or services to any user thereof. The information available on or through this web page is not intended and shall not be used as a substitute for the advice and consultation provided by an attorney. Any factual examples used to illustrate concepts are hypothetical and do not depict actual events or real persons.