Consumers and small businesses facing an insurmountable debt may believe bankruptcy is the only option. However, credit counselors and other industry leaders recommend getting advice and thinking ahead to the difficulties of being bankrupt. A bankruptcy may be a viable option for those who:
* Have had wage garnishments after a judgment
* Have mostly unsecured debt
* Have debt collectors calling at work or at home
* Are facing lawsuits
A Bankruptcy Attorney In Tacoma Wa will recommend that clients follow the tips below.
Do a Financial Assessment
Clients should know the nature of their debts, expenses, and income. With this knowledge, the client can understand what caused their financial problems, and they can take steps to avoid similar issues in the future.
Get a Free Credit Report
A visit to www.annualcreditreport.com will provide the client with a listing of all creditors. Some people think that a debt is no longer valid if it is charged off or the collection agency stops calling. However, this is not the case. If a client fails to include every creditor in a bankruptcy filing, they risk coming out of the process still in debt.
Notify all Creditors
Bankruptcy laws require the cessation of all debt collection attempts upon the successful filing of a bankruptcy petition. If a person files for bankruptcy, they should tell creditors, provide the attorney’s name, and specify the district in which the case is filed.
Get a Credit Counseling Certificate ASAP
One of the prerequisites of bankruptcy is to complete a credit counseling program with a government-approved counseling agency. The program can be done up to six months before filing. If time is crucial and the credit counseling requirement has not been fulfilled, problems and delays can result.
Hire a Lawyer
Bankruptcy laws are so complex that most consumers cannot file alone. Doing so is very risky, but a Bankruptcy Attorney In Tacoma Wa knows the law and can apply it to the case’s individual circumstances. Consumers should find an attorney who’s there to solve problems and sees bankruptcy as but one alternative. By considering all the options, a client can see the true costs and benefits of bankruptcy.
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