When debts pile up and it becomes impossible to keep up with repayments, bankruptcy can be a solution. It’s not recommended as an easy fix for any financial problem, but when creditors are harassing the debtor, when their wages are garnished, or when a lawsuit has been filed against them, bankruptcy can be a reasonable response. The following are some tips from a bankruptcy attorney in Longview, TX for those considering bankruptcy.
Before filing for bankruptcy, people should carefully analyze their financial situation. Listing all sources of income and all regular expenses can help them see whether their debt results from living above their means. Excessive debt is not always the fault of the debtor; factors like medical expenses and a job loss may not be under the debtor’s control. However, a financial assessment can guide how the person manages finances in the future.
Credit counseling is often a requirement of filing for bankruptcy. The counseling can take place anytime within six months of filing, but it’s a good idea to make the appointment as soon as possible. Early credit counseling can often help consumers take steps to avoid bankruptcy. Steps might include working with a mortgage company to lower monthly payments or postpone foreclosure.
The next step before filing is to pull credit reports from the major credit bureaus. Credit reports list all of the creditors the debtor owes, including creditors who have stopped trying to collect. It’s important to have an accurate and complete list of creditors when filing for bankruptcy.
Once bankruptcy has been successfully filed, the debtor will need to inform every creditor. According to bankruptcy laws, all attempts to collect a debt must cease once the debtor has declared bankruptcy. Creditors should be informed of the bankruptcy itself, the attorney’s name, and the district where the bankruptcy is filed.
Because bankruptcy laws are very complex, most people benefit from hiring a bankruptcy attorney in Longview, TX who can help them go through the process. An attorney can also help people understand whether bankruptcy is indeed the appropriate solution to their financial problems. To learn more about bankruptcy law, contact us.