If you’re trying to avoid bankruptcy, or if you believe yourself to be at an unavoidable stage, we are here to talk about it. The Law Office of Andrew Magdy offers free consultations, so give us a call whenever you like, or email firstname.lastname@example.org. Filing a Chapter 7 or 13 can be a daunting task. But the truth is that Bankruptcy is part of the economy, in good times and bad, because there are just so many reasons you may need to file. And needing to file is not a bad thing, it’s just something that can happen, and filing for bankruptcy is a fair action to combat a financial crisis. The personal factors for needing immediate debt relief may be sudden unemployment, divorce, shifts in the economy, etc. Whatever the reason, you should talk to an attorney about your situation. There may even be ways to avoid bankruptcy. If your debt is less than $10,000 then you may consider asset liquidation, or debt consolidation.
If you choose asset liquidation, we would still recommend talking to a lawyer first, as liquidizing the wrong asset could be catastrophic in the long term (e.g. cashing out personal retirement accounts early). If you consider debt consolidation, please make sure you are aware of any fees that may be associated, and that you are working with a professional. You may also talk to your creditors and see if they are willing to accept a lump sum settlement. Again, if you need help with the negotiations, we can help you save money. Finally, know your rights as a debtor. Some people are what is known as ‘judgement proof’. If you have little to no assets, and your income is exempt (e.g. social security), then you will not be subject to involuntary collection efforts - this means that you will not be taken to court, though debt collectors will continue to call you.
Sometimes, avoiding bankruptcy can be the worst thing to do. You may be simply prolonging the inevitable, paying back high interest debt (and usually simply paying back the interest on this debt, rather than the original loan). If you’re already up to the lawsuit stage, please do not ignore it. First, check whether you are responsible for the debt, and if you are, discuss the possibility of settlement. If this is outside of your means, give us a call and we’ll see what we can do to help. Simply considering bankruptcy as an option is a good idea, since you can properly weigh up the pro’s and con’s after speaking with an expert on the matter. We do not force anyone into bankruptcy, and there have been plenty of times when we advise against it, exploring your options with you, through the added benefit of years of experience. We’ve seen it all. Give us a call today if you need to talk through any debt matters (314) 802-8328.