For many people in Philadelphia their debt keeps climbing and they do not know what can be done. Depending on the situation, you could have several options such as refinancing or bankruptcy, but figuring out which steps to take can be confusing. If you are in this type of situation, then consulting a bankruptcy lawyer in Philadelphia may be a great source for information. You hear people talk about bankruptcy in a negative tone, but this action can potentially save your property and it could save you thousands of dollars over the years. Consulting a bankruptcy lawyer in Philadelphia is the first step in handling your debt accumulation problems.
When people refer to bankruptcy options, they make it seem like it is a last resort, but for many people it is the first step in handling their debt. Many people have developed a large amount of debt, because of lost employment, illness or they were not handling their money issues properly. When this occurs, many people will experience a surge in their debt, because they do not have the income to pay the monthly installments. Consulting a bankruptcy lawyer in Philadelphia can help you establish where you are having issues, so they can be corrected and handled in a proper manner. The first step after contacting a bankruptcy lawyer in Philadelphia is to bring every piece of documentation that pertains to your debt. These documents are mortgage papers, car loan information, credit card statements and paperwork for any other type of debt. The lawyer needs all of this information before they can recommend a course of action.
They will evaluate the different types of debt you have accumulated and then they may ask you about the possessions you would like to keep such as a home or car. Since each bankruptcy case is different, the lawyer will need to find out additional information about you and your family, because they want to know what is important to you. For those who want to keep property such as a home and cars, the lawyer will recommend a Chapter 13 bankruptcy. This form of bankruptcy is designed to help you pay off the debt you owe, but over a certain amount of time. Usually the creditors and lawyers will come to an agreement on the amount and in many cases; the creditor may reduce the total amount or reduce the interest on the account. Most Chapter 13 bankruptcies have a span of 5 to 7 years where you are responsible for paying a specific monthly payment. Many families have been able to keep their homes and cars, because of this type of bankruptcy. The lawyer may also advise you on another form of bankruptcy known as Chapter 7.
This form allows you to shed the debt you owe to any approved creditor. The courts will decide on whether the debt will be eliminated, but for homeowners, you may have to forfeit the ownership of your home. The only loan that cannot be eliminated by either type of bankruptcy is for school loans, but your lawyer can help you make a repayment plan for this type of loan as well. A bankruptcy lawyer in Philadelphia can be a great resource for you to utilize. These lawyers want to help you handle your debt and they have the information you need for a fresh start. Since they can help you in so many areas, you will have to decide on which path you should take. A lawyer can help you understand the different options you have, so when you choose a form of bankruptcy, you will be able to handle your debt and keep it from becoming any higher.