Individuals with excessive debt sometimes wonder whether it makes sense to file for bankruptcy. There are many reasons why people who need financial help should file for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Making this decision is something you should discuss with a well informed Mississippi Bankruptcy attorney who is an authority in consumer bankruptcy.
Bankruptcy laws are there to help you get a fresh start and relieve you of the burden of overwhelming debt.
When Does Filing Bankruptcy Makes Sense.
There are a numerous circumstances in which filing for bankruptcy can benefit you:
1. You Have Already Tried to Negotiate. If you have attempted to negotiate or work a repayment plan with your mortgage company or other creditors and they won’t listen to you. They want all the money now and aren’t willing to be paid out over time. This can leave you with no option other than to file for bankruptcy.
2. Your Debts Exceed Your Income. A major reason why people file is they just can’t pay their bills. This may be due to job loss, reduced hours at work, illness, divorce, and many other causes beyond their control.
3. Your Mortgage Company is Trying to Take Your Home. We are in the middle of a major mortgage fraud scandal involving robo-signers, fake documents, false affidavits and bogus assignments. Mortgage servicers make more money now when they foreclose than they do taking your regular monthly payments. One sure way to get control over your mortgage servicer is to file bankruptcy and sue the servicer and owner of your note in the bankruptcy proceeding.
4. Your Credit Score is Already Bad. Filing bankruptcy can improve your credit score. Most of our bankruptcy clients are back to a credit score in the 700’s within one to two years of a Chapter 7 discharge.
5. You Want to Keep Your Home and Vehicles. Many people are concerned that they will lose everything if they file for bankruptcy. However, getting rid of your unsecured debts like credit cards, loans and medical bills will leave you with the money you need to be able to keep the important things like the house and car.
Before you make any decision on bankruptcy, consult an attorney skilled in consumer bankruptcy and mortgage problems. Every individual’s situation is different and what might be right for someone else may not be right for you. Speaking with an attorney ahead of time can help you do some pre-bankruptcy financial planning so you don’t run the risk of losing certain rights and/or property. Hiring an attorney that only represents individuals, because of his or her knowledge and experience in consumer bankruptcy, is well worth the money.