Is Greensboro bankruptcy the answer to your financial trouble?
Image Source: Flickr User Quinn Dombrowski
If you’re a Greensboro consumer worried about debt and wondering what to do to get your finances back on track, one option might be to pursue a bankruptcy case. It’s upsetting to find out you can’t pay your bills because your income dropped, your expenses increased – or both. In some circumstances, you might be able to work out arrangements with your creditor to catch up, but in some cases, this might be impossible. Bankruptcy isn’t the right solution for everyone. Here’s a look at when it might be helpful.
Have You Exhausted Other (Reasonable) Avenues?
If you’ve recently fallen behind on your debt and the issue that caused your financial crisis has been corrected, then you might want to take another approach to getting current. For example, if you lost your job and were unemployed for a month or two, but are back to work now, you might just need a little breathing room. Try contacting your lenders and other creditors and explain the situation. Tell them you are working again and want to catch up and ask how they can help you.
With a car loan or mortgage, the lender might be willing to take the one or two payments you missed and tack them onto the end of the loan so long as you don’t miss any more installments. With your credit cards, if you had a good track record before your financial hiccup, they might be willing to reverse late payment and over-limit fees on a one-time-only basis. You won’t know until you ask and many creditors have programs to help you get back on track which is a win-win.
Avoid Resorting to Unreasonable Options
For Greensboro consumers struggling to catch up on debt, talking to your creditors and asking for help is reasonable and better done sooner than later. But if they won’t work with you, there are some actions you might consider that you should think twice about before trying. For instance, withdrawing money from your 401(k) to catch up on credit card bills isn’t a great idea. That money is your retirement cushion, and there are stiff penalties for early withdrawal plus tax implications.
Another option you might be weighing is taking out a second mortgage on your home. However, this might not be a good idea either. You’re potentially putting your home at risk to catch up on bills that might be better dealt with through Greensboro bankruptcy, particularly if your delinquent debt is mostly unsecured debt such as credit cards and medical bills. If you’re current on your home and auto loans, filing Chapter 7 bankruptcy need not affect these assets and your loans.
Get Advice From an Expert
Bankruptcy can be an ideal solution to deal with debt in some cases. However, it’s not a fit for everyone. Most clients that come into our office aren’t clear on the differences between the two types of consumer bankruptcy – Chapter 7 and Chapter 13. They’re not sure which type they qualify for, the benefits of each, and why one might be preferable over another. That’s why you should speak to a reputable, experienced Greensboro bankruptcy attorney before taking drastic measures.
Your initial bankruptcy consultation should be free, and you can bring in your financial documents and debt information to discuss your circumstances. You should explain your goals and why you feel behind in your debt. Once the attorney has a clear picture of your debt dilemma, they can explain the types of bankruptcy, how each could affect your future, and which might offer you the best debt relief. In the end, it’s your decision, but be sure it’s an informed decision you’re making.
Bankruptcy isn’t right for everyone, but if it’s a fit for you, it can be a life-changing step in the right direction for your financial future. Contact the Law Offices of John T. Orcutt today for a free appointment. Call 1-888-234-4181 now to set up a Greensboro bankruptcy consultation at one of our convenient locations in Raleigh, Durham, Fayetteville, Wilson, Greensboro, Garner or Wilmington.