Bankruptcy Questions Abound with Bill Laden
Creditors
When faced with bills that keep piling
up and creditors that relentlessly hunt you down day and night
it's enough to get your mind thinking about bankruptcy
questions. The main thing you may want to know is what will
filing offer you compared to working things out with the
harassing creditors. Some creditors are more willing to work
with consumers than others, and have programs in place to help
during a hardship period. It really isn't even industry
specific. One credit card company may be extremely willing to
give you a drop in interest rate and lowered payments.
Sometimes they offer this for so many months up to one year
depending on how far in debt you are and you specific
hardship.
Other creditors can act like the Gestapo and
not offer you any recourse for your situation. Unfortunately
alot of home loan and installment loans for cars and boats fall
under this category. They often are more hardcore and
aggressive about obtaining payments quickly. It really depends
upon the lender and each one is completely different. When
you're in this situation it can be very tempting to drum up
bankruptcy questions. Your may race with such inquiries
as,"which chapter should I file?" The chapter you decide to
file should meet the criteria for your debt situation. Some
people benefit best for Chapter 7 which cancels the debts. Some
people just need payments they can afford, but are being
stalemated by creditors. In these situations Chapter 13 may be
a better fit just to restructure debt load.
Typical bankruptcy questions often involve
thoughts about whether cosigners will be protected or not.
Sometimes cosigner can be held liable and other times they have
no worries. These are worries that are best addressed with an
attorney. They will let you know the ins and outs of filing and
which chapters will work best. Foreclosures are something they
are knowledgeable about so they can give you knowledge about
whether you will be protected from it by filing. They can lend
their expertise both before filing and aftercare to help
construct a viable budget.
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