A reputable and experienced bankruptcy attorney from Brent George Law can help you decide if bankruptcy is right for you. The reasons a person may file for bankruptcy vary greatly from person to person. The results of bankruptcy are the same for everyone, however: the declaration of complete legal insolvency. While it may seem like there is no other choice, taking steps to eliminate debt may be a better option than bankruptcy.
1. Settle Your Debts
Bankruptcy is used to wipe clean a person’s debt. If you are headed for bankruptcy, you may be able to consolidate or settle debts to pay back creditors instead of relinquishing your property.
- Debt consolidation allows a borrower to consolidate their debts into a single loan. This often has the advantage of having a lower interest rate and lower monthly payments than the original outstanding debts, making the monthly costs more manageable.
- Debt settlement is a negotiation between the borrower and the creditors. These negotiations may include arrangements like a reduced payment schedule, or waving payments for a short period of time with the agreement that the debtor makes larger payments later.
2. Restructure Your Mortgage
For many people considering bankruptcy, their mortgage is a large source of outstanding debt. Much like settling credit card debts, restructuring or refinancing their mortgage may allow borrowers to have a lower monthly payment. Brent George Law may be able to help you determine if this is a viable option for you. There are two primary ways to change a mortgage.
- Consider negotiating an agreement with your housing lender. Much like with debt settlement, renegotiating a mortgage may allow a borrower to establish a temporary payment plan that allows for greater liquidity during a time of financial difficulty.
- Refinancing a mortgage is similar to debt consolidation in that a new mortgage, ideally with lower interest rates and a longer payment schedule, is used to refinance the property.
3. Sell Your Property
Very few people are excited by the prospect of selling their hard earned property, but bankruptcy may cause a person to loose those assets anyway. By selling property before declaring bankruptcy a person can remain in control of what assets are sold, and for how much.
Avoiding bankruptcy may mean a time of real sacrifice and financial diligence for you and your family. A free, no risk evaluation from Brent George Law will help you get the professional legal advice you need when deciding about whether or not to file for bankruptcy.