Chapter 7 Lawyer Can Offer Alternatives to Bankruptcy

Often people get into financial trouble because of accumulating debt and the feeling that there is no way to get out from under high interest rates and crippling balances. For many people they think that filing for bankruptcy is their only option. They don’t see any other solutions to what has become for them a problem that controls their lives. Well, while it can be difficult to see the light at the end of the tunnel when you are in the midst of it there are actually a number of alternatives that may result in far less drastic implications of the future. It is worth considering that in order to file for bankruptcy that all assets must be liquidated. For most people the prospect of starting completely over is not appealing and as such they are happy to look into other options. Even if ultimately it is decided that it is in fact the best solution it still is worth making sure that it is the right decision. It is best to call a Chapter 7 lawyer regardless of what is decided. They will let you know what the best solution is and to guide you through the process regardless of what you decide.

Before anything else start contacting credit card and other companies to whom a debt is owed to see if there is a way to settle. A Chapter 7 lawyer will tell you that bankruptcy is a pretty drastic step and many companies are looking to get at least some of their money. For this reason they are usually amicable to settling the balance even if they only receive half of what is owed to them. They know if their debtors go bankrupt they will likely receive significantly less. That is why there is no harm in calling and seeing if they are willing to work something out. It will be damaging to one’s credit but not nearly as bad as filing for bankruptcy. A Chapter 7 lawyer will help their client keep their assets like their home and car.

Another option is if there is money owed to several different companies is to consolidate the balances of many different accounts. Sometimes it is possible to find a single creditor and that will reduce the total of monthly payments and also can occasionally result in a smaller interest rate. Unfortunately, for most people by the time they are considering bankruptcy it is most likely too late to get a low rate consolidation and will often be declined or end up increasing their interest rate. For some this increase in rates is worth the reduction of monthly payments. It will be up to the individual to determine what is best for their specific needs.

A Chapter 7 lawyer is there to help their client navigate what is often an incredibly difficult and treacherous path toward ameliorating their bad financial situation. They will offer tips to avoid having to liquidate one’s assets and also offer a number of solutions. If money troubles have become unbearable it is highly recommended to contact a Chapter 7 lawyer.