What To Consider Before Filing For Bankruptcy

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If you are thinking about filing for bankruptcy, there are a few things you will want to consider first to be sure that you are making the best possible decision. Bankruptcy isn't always the right option for many people, but if it is for you, then it can be scary moving forward if you aren't really sure how it will ultimately benefit you. Here's what you need to consider before filing for bankruptcy:

Negotiating with Creditors:

Before you even consider filing for bankruptcy, you should try to negotiate with creditors first. This can help you to avoid bankruptcy altogether. This is because creditors would rather reach a settlement agreement rather than have your debts handed over to bankruptcy. Most of the time, creditors will be willing to reach an agreement with you for this reason. 

Meeting with a Credit Counselor: 

Before filing for bankruptcy, you should also meet with a credit counselor. By doing this, you can also avoid filing for bankruptcy. This is because credit counselors will help you to reestablish your credit, plus they will be able to negotiate with creditors for you and most often they get the results that are needed. This is because, based on their experience, credit counselors know all the right things to say to creditors when negotiating. 

If you have tried the above two things and neither worked in your favor to help you avoid bankruptcy, then you should definitely consider filing for the following reasons:

• Wages are Being Garnished: In the case that your debts have become really poor, creditors may begin to garnish your wages. If this has happened to you, then filing for bankruptcy can work in your favor because it will stop your wages from being garnished. 
• Medical Bills are Heavy: If you have an excess amount of medical bills that you owe because health insurance wouldn't cover it for you, then filing for bankruptcy can help because it will discharge these medical bills for you. In some cases, a payment plan that is better suited for you will also be discussed so that it makes it easier for you to pay these bills after filing for bankruptcy. 
• Assets May be Lost: If you have any assets that are under a loan, such as a house or a car, then there is a chance that you can lose these assets because of excessive amount of debt. If this is the case, then you should consider filing for bankruptcy, in which case your assets can be protected and you won't run the risk of losing them. 

For more information, contact D Derk Demaree Attorney at Law or a similar legal professional.

13 November 2015