There are a number of steps you can take in order to avoid bankruptcy proceedings. If you are behind on your credit card payments, car loan, and / or mortgage payments, you will want to take some steps immediately to avoid bankruptcy for these debts.
First, many people are overwhelmed by credit card debt
Do not worry about how to avoid spending with your credit card; The important point for you now is how to get out of your current problem. An easy step is to contact your credit card company and try to negotiate a lower interest rate. The credit card companies want you to keep your business, because they make money from the high balances of your credit card.
In addition, credit card companies often charge excessive interest rates on the money that you have “borrowed” from them using the credit card. Many – even most – of the credit card companies will want to lower their interest rate to some degree, if you only have time to ask for it.
When you are dealing with large sums of debt, any reduction in the interest rates charged for your debts will help you, in the long run, in that you will not have to pay as much money as you would have to do with a higher interest rate. Not only is it easy to make a phone call and ask for a reduction in the interest rate, but also very likely you will get it.
Next, you can request the assistance of a credit counseling organization
Which will help you negotiate with your creditors to form a payment plan that you are able to meet. Each state has non-profit agencies on debt counseling that are in business to help you manage your debts. This is also a good solution when you do not feel calm, or are simply fed up, of dealing with your creditors by yourself. Even if you have to pay off your debts in full, you can avoid a bankruptcy on your credit report, which may be very important to you.
It is also important to keep in mind that you do not have to endure certain types of harassment from your creditors. You can not be put in jail for not paying your debts (except that your debts involve the support of children or food). Your creditor does not have the right to call your work if you do not want to be contacted there. The Fair Debt Collection Practices Act, which is a federal law, sets out some very clear guidelines about what collectors can and can not do to collect a debt. Thus, if you are being harassed by creditors, you should take some steps to educate yourself about what those creditors can do if you do not pay off your debt.
Speak Today with a Qualified Lawyer in Bankruptcy
This article aims to be useful and informative. But legal issues can be complicated and stressful. A bankrupt Lawyer can meet his particular legal needs, explain the law and represent him in court. Take the first step now and contact a qualified Lawyer bankrupt near you to discuss your specific legal situation.