Perhaps you have suffered an unexpected financial setback and are unable to meet or not able to fully keep up with your obligations. You are worried about how you are going to meet your obligations to your creditors and they may be starting to call or send letters.
Perhaps you have always honored your obligations and made payments on your debt for a long time, but have seen very little progress in paying it off, and have little hope of that occurring within a reasonable time due to high interest rates.
Perhaps you have received a threatening letter from a creditor or a summons for a lawsuit, such as a collection proceeding or a foreclosure, and you are not sure what to do.
A discussion on the possibility of negotiating with your creditors, or restructuring or eliminating your debt may be in order. Many of your creditors may want to work with you to receive something for the debt owed them.
A bankruptcy case is always a last resort, but it is not the end of your financial life. Rather, the policy behind the bankruptcy laws is a “fresh start” for the honest but unfortunate debtor:
The federal system of bankruptcy is designed not only to distribute the property of the debtor, not by law exempted, fairly and equally among his creditors, but as a main purpose of the act, intends to aid the unfortunate debtor by giving him a fresh start in life, free from debts, except of a certain character, after the property which he owned at the time of bankruptcy has been administered for the benefit of creditors.
Stellwagen v. Clum, 245 U.S. 605, 617 (1918).
While a bankruptcy filing will stay on your credit report for 7 to 10 years this does not mean that lenders will not lend to you. In fact it will likely be just the opposite; lenders will be more willing to lend to you following your bankruptcy case knowing that you have been relieved of other fixed obligations. In addition your credit score will likely increase in the 12 months after bankruptcy once certain debts are eliminated, and you can start reestablishing your credit right away.
In many cases, if a workout of debts is not practical or possible, a bankruptcy case may be the only remaining and best option to be able to manage or be freed of the debt burden resulting from certain unfortunate decisions or circumstances, and move forward.
Contact me to schedule an appointment to discuss your situation and explore options.