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Are you Considering Filing Bankruptcy to Eliminate Your Debt?

There are good reasons for consumers to consider filing for bankruptcy.
There are also conditions where bankruptcy will be ruled out by those in
a financial bind.

Changes made in U.S. bankruptcy law that went into effect on October 17,
2005 have, for many, taken away the prospect of a fresh start. The new
bankruptcy filing laws make it tougher for individuals to qualify for
discharge of their debt through a Chapter 7 bankruptcy filing. If you are
in extreme financial hardship, with limited assets and income, and need
relief from creditors, you would want to consider a free consultation with
a bankruptcy attorney.

This is over-simplified, but:

For those that have income that exceeds the means test for your state and whose monthly expenses leave a few hundred dollars left over each month (not actual expenses, but what the IRS says are allowable expenses), were you to file bankruptcy, you would likely have to enter into Chapter 13. This would require you to pay creditors for usually 3-5 years and sometimes pay up to 100% of each individual debt, depending on your circumstances. You will definitely want to understand the implications of both chapter 7 & 13 before choosing if either are the appropriate option for you. Most especially, understand chapter 13, and that settlement by comparison, will often be a superior option if you can be aggressive in accessing the money to fund creditor offers.

If you are reading this while trying to determine how you can avoid bankruptcy and you can qualify for a chapter 7, you can schedule a free consult with a CRN specialist to help you decide if avoiding bankruptcy even makes sense. Far too many consumers are sold into an alternative to bankruptcy, when their situation suggests bankruptcy is the correct option to go with. Our specialists do not "sell" you into anything. Our consultations are designed to be informative and instructional in what we see may work for you. If we see bankruptcy as something that will benefit you, do not be surprised if you are encouraged to seek out a free consultation with an attorney (if you have not already had one).

When scheduling a consult with a bankruptcy attorney, keep in mind that so many of them will offer a free consultation that it does not make sense to schedule a paid consult. If you speak to an attorney charging for the consultation, just move down the list until you speak with one who doesn't. Our suggestion is to do more than one consultation. You will gain a foundation of knowledge in the first one, while having many questions answered. In the second consultation, you will have more detailed questions and should be more prepared to dig and learn of the long term implications of pursuing bankruptcy. Should you get a 3rd consultation, all the better. When you have consulted with a few attorneys, and decide it is the best way to go with your current financial issues, you will reflect back on your experiences with each attorney and decide who you want to hire. Did one attorney seem all about the facts and ask little to no questions about your life? Did another ask leading questions and seem genuinely interested in whether bankruptcy was the right thing for you? If so, hire wisely. One may just be pushing paper for a fee, while the other is genuinely concerned and trying to assist you in optimizing the benefits available to you through bankruptcy.

There are many sources on the internet, and perhaps in your circle of influence, that will have you believe settlement with creditors is better for you in the long run, than bankruptcy. These people may be selling you something, or may mean well, but have no real experience with which to base their advice. Either can be dangerous to listen to. We advocate strongly for scheduling a consult with both a CRN specialist and multiple attorneys who can provide you more specific details on bankruptcy. Speaking with a CRN specialist can help confirm how settlement, or other creditor mediation, may be better for you, or show you where it would not be the better path.

Compare filing bankruptcy alongside negotiating your debt with creditors:

This comparison is just a snap shot of highlights. It is not intended to be exhaustive.

Bankruptcy:

• The court is in control. The court determines your living expenses, not you.
• Bankruptcy remains on your credit for 10 years. It may effect you even longer for certain employment and loan qualifications.
• Chapter 13 Bankruptcy takes either 3 or 5 years to complete.
• The court can protect you from lawsuits.
• Bankruptcy is made public.
• You must participate in a court approved credit counseling program for 6 months prior to filing a Chapter 7 Bankruptcy.
• Chapter 13 has no flexibility whatsoever and has a historical 30% completion rate due mostly to this inflexibility

Negotiating debt with your creditors:

• You are in control. You determine your living expenses.
• Negative items can remain on your credit report for 7 years, although you can be back on track with credit options in as little as a year, depending on ability to pay reduced settlements.
• You control how quickly you are rid of the debts.
• You can still be sued, but can negotiate these debts out of court.
• You can negotiate your debts, on average, to between 30%-70% of balance.
• Your debt settlements are a private matter.

Filing for Bankruptcy is the best option available to many consumers. Filing bankruptcy should only be considered as an absolute last resort. Each of you reading this has different circumstances. Each of you would have unique and separate goals. It is especially important to consider all of your options before taking action when, ultimately, that action may affect you many years from now. There is no rush to make a decision to file unless perhaps your paycheck is being garnished or your bank accounts levied.

Contact a bankruptcy attorney in your area that specializes in Bankruptcy for more information and a free consultation. One of the best resources for finding a local bankruptcy attorney is going to www.nacba.org and use your zip code to search listings. On average, you can expect to pay $1,600.00 for legal fees and court costs when filing a straight Chapter 7.

Start Eliminating Your Debt Today:

Call us toll-free today at 1-800-939-8357 to start your debt settlement and negotiation program or click here to use our contact form.