Mistakes Facing Bankruptcy
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Bankruptcy seems scary or fearsome topic and dilemma that one may want to erase or eradicate in one's life if it arrives and threatens his/her life. On the contrary, it is not. In this paper, we would like to point out the highlights that your bankruptcy attorney in Ontario CA would want for you to remove from your mind-setting when it comes to bankruptcy.
According to Christopher McAvoy (2010) in his The Bankruptcy Book, there are some thoughts or concepts which must be eradicated from one's vocabulary when facing bankruptcy or filing for bankruptcy. These are:
1. Credit Counseling
According to McAvoy, C. (2010), In the past, counseling services regarding credit were non-profit departments designed to guide customers in the interest rates lowering or making a repayment plan for debts. If your current debt load is unmanageable, you may seek credit counseling services to lower your monthly payments. Credit counseling services are found in virtually every city, with companies offering this service for a fee. Though there are reputable companies, there are also those that take money without performing any service.
2. Debt Consolidation or Doing Nothing Does Not Always Help
Subsequently, the second unnecessary and unhelpful thought, debt consolidation, which is according to McAvoy, C. (2010), Debt settlement is another option to bankruptcy. Debt settlement companies will arrange some terms with your creditors. The goal of debt settlement is to decrease your total debt load through settlements below the balance due to each creditor.
Debt settlement is often due unsuccessful in part to broad fees that are up-front that can run as much as 25-35% of the total pardoned debt. Also, not every creditors will perform with debt settlement companies.
Though these concepts may offer you a possibility of taking over or controlling your situation at the very least, these are not the right solution. They are an only band-aid solution to your problems. Rather, what we recommend is for you to confide with a valid, expert, and efficient lawyer/attorney in bankruptcy cases, just like the LG Law Firm. Hence, this is just an educational guide, and it is still best to reach out with a professional bankruptcy adviser/lawyer.
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