Choosing Personal Bankruptcy Or Debt Consolidation

By Jose Butler


For a lot of people, talking about money can be uncomfortable but often necessary. If a person is looking to improve their financial situation and doing it their way leaves them in a rut, change is needed immediately. Speaking with a personal bankruptcy attorney or organization is usually the best solution.

There are some instances when it is not enough to save money, cut back on shopping, or earn a decent annual salary. Even when a person seems to have everything in the world going for themselves, events like getting laid off from a job can have a major impact on their lives. Another thing to think about are things that cannot be predicted, like an auto accident where the person at fault is uninsured and medical expenses are through the roof.

In this scenario, there is often little capital or collateral a person can use to sustain themselves while they study. Even with a job, this person may have spent most of their paycheck on past debts or other obligations. While returning to school may have been a good idea, when a person is dealing with debt there is no perfect time to return.

In the latter situation, it may help to see a debt consolidation firm. For one, it costs a lot less and it is ideal for those with few assets or who do not foresee themselves being able to afford attorney fees. This is not to say that someone who is a renter or makes a modest salary should not file for Chapter 7 or 13.

There are also events that are way out of control for anyone, like getting into an accident and not being able to work for months. Medical expenses can wipe out anyone who does not have above average health benefits. Those who are considered middle or working class may make too much money to qualify for public assistance.

Although attorney fees may be included in bankruptcy payments, those with little to no assets and meager funds may find that a legal clinic can cut professional costs. Most of these are run by law school students and volunteers. While many provide a wealth of information, this may not be enough to help those in a dire situation.

In situations where money is tight, someone may also sell a service that allows the average person to file without an attorney. While this is not against the law, it is not advisable for everyone. One reason is that bankruptcy laws vary by the state and one detail, such as personal assets, can play a big role in the declaration being approved by a higher court.

Learning about personal finances can be interesting for some but it helps to know the basics before entering into an agreement. There are some people who bank on those who may have a lack of knowledge and will believe any kind of miracle cure for monetary problems. These are the same people who also find that it cost them more money to pay for these fast solution rather than seeing an expert.




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