Many financial planners recommend that individuals and families set aside some funds to deal with unexpected expenses. This can help avoid financial difficulties when having to pay medical bills, vehicle repairs and other costly bills.
However, e ven those with the best intentions can experience problems when there is a downturn in the economy. The recent downtown resulted in many people losing their jobs or work hours were cutback. Home values have decreased trapping many homeowners with mortgages they can no longer afford. Many people have depleted their savings and/or had to rely on credit cards for living expenses while they search for employment.
Debt consolidation and settlement companies are a consideration for people facing financial hurdles. These companies promise their customers that they will negotiate with creditors and reduce either the total amount owed or the monthly payments to creditors. Fees are charged for their services. They often advise customers to stop making monthly credit card payments. Generally, these services are limited to only credit card debts.
Often the credit card companies will pursue collection actions despite the plan implemented between the consolidation/settlement company and the customer. Unfortunately a lot of customers are not aware of the damage these companies may cause.
Bankruptcy is another option for those having financial difficulty. Filing for bankruptcy will allow you to either create a plan that will provide a solution to all debts or eliminate all unsecured debts. In most cases, you are allowed to keep assets while going through the bankruptcy process. Bankruptcy offers protection from creditors so that they cannot move forward with collection efforts.
If you have questions about your financial situation, speak to an experienced bankruptcy attorney as soon as possible. A bankruptcy attorney can walk you through your options.
Do not wait to discuss your concerns with a qualified bankruptcy attorney. Your financial problems may only get worse over time. The longer you wait, the more difficult it may become. Discussing your options will arm you with the knowledge you need to make an informed decision.