You may feel overwhelmed by excessive bills, but there are practical avenues of escape. Taking control and action can help you see light at the end of your debt tunnel before needing to look into bankruptcy law. Here is how to start a battle plan to get you on top of your debt situation.
How to Get Control of Your Debt Situation
1. Know Your Debts
First, consider these crucial first steps in tackling your debt problem: knowing the amounts and types of debts you have and ending your debt creation cycle. Once you have a clear picture of why, what, and who you owe, you can plot a course for addressing each debt in the proper order.
2. Separate Debt Into Categories
All debt is not equal. Some debts should take priority, such as child support, spousal support, back taxes, and student loans. Under bankruptcy law, you generally cannot discharge those debts. In addition, failing to pay them can affect driver’s and professional licenses, your job, or career choices.
If much of your debt is in that category, you may not want to file bankruptcy at all. If you ultimately choose this option, Chapter 13 might be your best option. If most of your debt is unsecured, such as medical bills and credit card debt, Chapter 7 bankruptcy relief discharges that debt without making payments.
3. Contact Creditors
If you are behind in bills, especially those priority debts, mortgages, or car payments, contact your creditors and inform them of your situation. You may be able to work out solutions, especially if you expect your financial situation to improve in the near future, such as a return to work or a personal injury settlement. Many creditors are willing to reduce amounts owed to avoid filing lawsuits or garnishments. By negotiating, you may not have to seek out a bankruptcy law attorney to stop a foreclosure or repossession.
Managing and reducing debt frees you from frustration and empowers you to pursue personal and professional goals. If you need more than self-help efforts, enlist the great value and peace of mind in hiring a lawyer for debt relief assistance. Alabama residents seeking help consult Donna C. Crooks Attorney At Law. Backed by more than 20 years of experience, this bankruptcy law attorney advises and represents clients throughout Dothan, Enterprise, and the surrounding areas, including Maxwell-Gunter Air Force Base and Fort Rucker. Allow her to guide you to a fresh financial start. To learn more about her bankruptcy law services, visit her website now or call (334) 598-9534 to schedule an initial consultation today.