When debts become overwhelming, you have a few options for how you can handle the situation. The first is that you can sit back and try to ignore the collection attempts that are coming. This might not be very productive since you can't answer your phone or check your mail. You might not even be able to answer your door.
There are a lot of things that go through your mind when you have to file for bankruptcy. The emotional effects of the process are one of the aspects of bankruptcy that you might not be prepared to deal with.
Filing for personal bankruptcy is something that you might have tried to avoid, but there comes a time when you might realize that you can't keep on going the way you have. When this occurs, you should find out about the options that you have for taking charge of your debts. This isn't something that is always easy, but it might be the step that helps to give you peace.
It's difficult to know that you have bills you can't afford to pay or bills that you pay that never seem to help you pay down your debts. You work hard, but you're struggling financially. Should you have to struggle, or is there a way to help reduce your burden?
Many people think of bankruptcy as an easy way out of debt. This isn't at all the case. Bankruptcy is a method of last resort that people often feel bad about utilizing. Most people who file for bankruptcy aren't trying to game the system. They didn't purposely get into more debt than they could handle. They didn't go out and buy things on credit in an effort to try to get free items.
Whether you file for Chapter 7 or Chapter 13 bankruptcy, you'll likely face the meeting of creditors, which is also called the 341 meeting. For many people, this sounds like a frightening meeting where creditors will be there to bully you; it sounds especially disheartening if you've turned to bankruptcy in part to stop creditor aggression and harassment. The truth is, the 341 meeting is usually short and to the point with little to be anxious about.
Chapter 7 is just one kind of bankruptcy you might be considering if you are in a large amount of debt. It's not for everyone, though, and there could be other alternatives you need to consider first.
Filing for bankruptcy isn't an easy decision for many people. You probably want to fulfill your financial obligations, but you just can't see a way to make that happen. For people in your shoes, bankruptcy is an option that often isn't explored until every other possible avenue for taking care of the bills has been tried.
The legal fee in a Chapter 7 bankruptcy can vary widely depending on the complexity of the case. Fees have risen steadily since the 2005 overhaul of the bankruptcy laws, which impacted Arkansas and the entire country. Those laws increased considerably the amount of labor that the attorneys and their staffs had to put into a bankruptcy case.
How can an individual or married couple best determine if bankruptcy is the right solution to deal with an unmanageable debt load? Frankly, the very best way is to make an appointment to discuss the facts with an experienced consumer bankruptcy attorney. For those here in Arkansas or those located elsewhere who cannot do that immediately, there are a few things to look at.