Is There Anything I Can Do About My Debts to Avoid Filing Bankruptcy?
By: LawInfo
Published: 12/2008
There are a number of steps that you can take in order to avoid bankruptcy proceedings. If you find yourself falling behind on your credit card, car loan, and/or mortgage payments, you may want to take some immediate steps so as to avoid filing bankruptcy on these debts.
First, many people are overwhelmed by credit card debts. Never mind how you got yourself in over your head with credit card spending; the real issue for you now is to figure out how to get out of it. One easy step to take is to contact your credit card company and try to negotiate a lower interest rate. Credit card companies want to keep your business, because they are making money off of your high credit card balances. Plus, credit card companies often charge very excessive interest rates on the money that you have “borrowed” from them by using your credit cards. Many – even most – credit card companies will lower your interest rate to some degree, if only you take the time to ask. When you are dealing with large amounts of debt, any cut in interest rates charged on your debts will help you in the long run, in that you won’t have to pay back as much as money as you would with a higher interest rate. It is not only easy to make a phone call and ask for an interest rate cut, but you are also likely to get it.
Next, you can enlist the assistance of a credit counseling organization, which can help you negotiate with your creditors in order to form a repayment plan that you can afford. Every state has non-profit debt counseling agencies that are in business to help you manage your debts. This is also a good solution when you don’t feel comfortable, or are simply fed up, with trying to deal with your creditors on your own. While you will have to pay back your debts in full, you will be able to avoid having a bankruptcy on your credit report, which may be very important to you.
It is also important to keep in mind that you don’t have to put up with certain types of harassment from your creditors. You cannot be thrown in jail for failing to pay your debts (except if your debt involves child support or alimony). Your creditor does not have the right to call you at work if you don’t want to be contacted at work. The Fair Debt Collection Practices Act, which is a federal law, sets forth some very clear guidelines about what debt collectors can and cannot do in terms of collecting a debt. Thus, if you are being harassed by creditors, you should take some steps to educate yourself about what exactly these creditors can legally do to you for not paying your debt.
Other Credit Repair Lawyers Articles
-
How a Bankruptcy Attorney Can Help You
Corporations and other businesses are required to declare bankruptcy through an attorney. However, individuals are allowed to represent themselves in bankruptcy … More -
Free Consultations: Important for Bankruptcy Cases
If you are looking to hire a bankruptcy attorney then you have likely seen multiple ads that all claim to provide prospective clients with free legal … More -
Will Filing for Bankruptcy Get Rid of All My Debts?
Many people think that if they simply file Chapter 7 bankruptcy, then they will get rid of all of their debts. Unfortunately, this is not the case. There … More -
How Have Bankruptcy Laws Recently Changed?
With a record number of bankruptcies in America on file, Congress has taken action to hold more people accountable for running up debts that they simply cannot … More -
Some Debts May Remain After Bankruptcy
The decision about whether to file bankruptcy is a difficult to decision to make. People often worry about the lasting effects on their credit history and their … More -
What to Bring to an Initial Consultation With a Lawyer
Beginning a legal action can be stressful, and most people considering hiring a lawyer are already in a stressful situation. You should do your best to prepare for … More
