A Last Resort

Before filing for bankruptcy, you should consult an Oakland bankruptcy lawyer about all of your bankruptcy options. Such an Oakland bankruptcy lawyer will tell you that federal law requires that you take credit counseling at least six months before filing for bankruptcy. The purpose of such credit counseling is to determine if you should actually be filing for bankruptcy.

Any good Oakland bankruptcy lawyer will tell you that bankruptcy should be seen and treated as only a last resort when all your other repayment and budget options have been exhausted. Sometimes, a more modest repayment plan or credit renegotiating will suffice instead. There are actually several bankruptcy alternatives you might consider.

First, create a budget that does that includes your mortgage and car payment, but not the rest of your existing debt. How much do you have a month that you might use to repay any debt after you have exhausted all your living expenses?

Sometimes, a credit counseling organization will help you create a feasible repayment plan. These generally work best when you owe mostly credit debt, but not so much with unsecured debts. If you focus completely on secured debts, your unsecured debts might go unpaid. In any event, such a plan is called a debt settlement plan.

However, sometimes, bankruptcy is the only way out of a bad situation for some people. In that case, they need to decide if they should be filing for chapter 7 personal bankruptcy or chapter 13 personal bankruptcy. Chapter 11 is for farmers an chapter 12 for businesses so don't worry yourself with them.

Chapter 7 involves a court-appointed trustee helping you liquidate nonexempt personal property to help pay back your debtors. Chapter 13 reorganizes your debts into a three to five year repayment plan. Which works best depends upon your own particular bankruptcy case.



For experienced, knowledgeable and trustworthy bankruptcy assistance, contact the attorneys from www.legalhelpers.com. Call toll-free 800-260-1402 today for your initial free consultation or come into one of their 100 offices across the country.