Chapter 7 Bankruptcy

Making Sure That You Have Explore All Of Your Options Before Filing Chapter 7 Bankruptcy

Exploring credit counseling

Because Chapter 7 bankruptcy has serious and lasting effects on your credit and your financial future, it is important to consider all of your options prior to deciding to file Chapter 7 bankruptcy. One option to consider is consumer credit counseling. There are many non-profit services that aid consumers in analyzing their debt situation and making a determination whether any kind of debt consolidation or debt payment plan would benefit you more than filing a Chapter 7 bankruptcy.

Consider requesting payment plans from your creditors

Before jumping into a Chapter 7 bankruptcy, you should consider contacting your creditors personally. Often by making contact with the creditor and emphasizing a willingness to pay on the debts you have incurred, is enough to show the creditor that you have intentions of settling the debt and not trying to escape payment through filing a Chapter 7 bankruptcy. Creditors appreciate the contact from you and will sometimes try to work out a settlement of the debt. They would certainly rather see a payment on the principal and forgive some of the interest, rather than see the entire debt be washed away by a Chapter 7 bankruptcy.

Consult a local attorney

If you have covered sought credit counseling or have not been able to work out an amicable agreement with your creditors, you may want to at least consult a local attorney prior to deciding to file a Chapter 13 bankruptcy. You can locate many local bankruptcy attorneys through your yellow pages or internet searches. Often they will offer a free initial consultation. You can take advantage of that consultation to seek advice on whether filing a Chapter 7 bankruptcy is the right course of action in your financial situation. Someone experienced with Chapter 7 bankruptcy filings will be able to tell you whether filing would benefit your situation or in some cases could worsen it. Ultimately, it is best to seek advice from any reliable source prior to deciding on filing a Chapter 7 bankruptcy.