Filing for bankruptcy protection from the government can eliminate many of your debts, including credit card debt. Nonetheless, there are many debts that bankruptcy coverage will not eliminate. Although filing for bankruptcy can make it significantly easier to repay those debts, it's still necessary to consider your options for debt repayment.
The simplest option, of course, is just to repay them directly. If you have the income or savings to pay off certain debts, repaying them outright will immediately eliminate that part of the equation. This method can be very effective for certain debts, but it must be used responsibly. Even if there are debts that you can pay off in one go, paying them off might not be the best use of your resources. With the help of a lawyer, you can work with your creditors to construct a thought-out repayment plan.
When formulating a plan for repaying your debts, it's important to prioritize. Your mortgage payments might be your most important debt; missing them can mean losing your house. But mortgages are often very large and cannot be repaid immediately. For this reason, it may be possible to negotiate a different repayment plan with your creditors. Negotiation can prevent them from foreclosing on your house while allowing you to create a plan for repaying them and other creditors.
Depending on the particulars of your finances, you might be able to file for Chapter 13 bankruptcy, rather than the standard Chapter 7. Chapter 13 bankruptcy lets you work with your creditors and the courts to consolidate your debts into one payment, with oversight from the court. This can even give you lower interest rates to make debt repayment easier.
Only an experienced bankruptcy lawyer can help you explore all your options to find a plan that works best. Debt management plans are as unique as the people creating them, and a lawyer has the expertise to help you.
To discuss your case with a lawyer, call the Boston bankruptcy lawyers of Joshua Spirn & Associates today.
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