Bankruptcy Concerns
Bill Laden Creditors Have Bankruptcy Concerns
When faced with mounting expenses and creditors that constantly pursue you day and night, it’s easy to become preoccupied with bankruptcy issues. The biggest question you may have is what filing will give you over negotiating with the harassing creditors. Some creditors are more eager to engage with consumers than others, and they have programs in place to assist them during a difficult time. It’s not even industry-specific. One credit card company may be eager to offer you a lower interest rate and cheaper payments. Depending on how far in debt you are and your individual situation, they may grant this for a few months to a year.
Other creditors may act like the Gestapo and refuse to offer you any help with your issue. Unfortunately, many home loans and installment loans for automobiles and boats fall into this category. They are frequently more tenacious and aggressive in demanding money as soon as possible. It is entirely dependent on the lender, and each one is unique. When you’re in this scenario, it can be very tempting to start asking inquiries about bankruptcy. Your mind may race with questions like, “Which chapter should I file?” The chapter you choose should match the requirements of your debt position. Some people benefit the most from Chapter 7, which discharges debts. Some folks just require payments that they can afford but are being held up by creditors. In some cases, Chapter 13 may be a preferable option simply to reorganize debt.
Typical bankruptcy issues sometimes include concerns about whether or not cosigners will be protected. Sometimes a cosigner is found accountable, and other times they are not. These are concerns that should be discussed with an attorney. They will explain the ins and outs of filing and which chapters will work best for you. They are educated about foreclosures and may advise you on whether you will be protected from them by filing. They can provide assistance in developing a feasible budget both before and after filing.