The present housing market, soaring medical costs and rising gas prices have sent many individuals and families into financial crisis. If you are unable to pay your mortgage, and creditors don’t stop calling, it is time you need to essentially seek advice from a chapter 13 bankruptcy lawyer in Atlanta.

Chapter 13 Bankruptcy, What Is It All About?

Chapter 13 Bankruptcy law enables individuals to repay some or all of their debts under a bankruptcy repayment schedule of 3-5 years. While Chapter 7 Bankruptcy involves liquidation of all unsecured debt, Chapter 13 Bankruptcy does not automatically discharge debts, but allow individuals to keep some of their belongings.

Filing for Chapter 13 Bankruptcy helps to stop home foreclosure repossessions, proceedings and end wage garnishments or creditor calls. In order to file Chapter 13 Bankruptcy, an individual should essentially have a constant source of income to meet bankruptcy repayment schedule requirements.

Working of Chapter 13 Bankruptcy:

With Chapter 13 Bankruptcy, individuals are required to create a bankruptcy repayment schedule and will require making the payment to the trustee. All the outstanding debts will be prioritized and paid according to the bankruptcy law. After opting for Chapter 13 Bankruptcy, debts will not be discharged instantly, but by the end of the bankruptcy schedule.

Why do you need Chapter 13 Bankruptcy Lawyer Atlanta?

Filing for personal bankruptcy has become more difficult with the new bankruptcy laws. By filing Chapter 13 Bankruptcy, many individuals who may be eligible for Chapter 7 Bankruptcy will now be forced to repay some or all of their debts.

Present bankruptcy is governed by centralized rules and regulations. Although you can file for bankruptcy on your own, it is always recommended to opt for Chapter 13 Bankruptcy Lawyer.

Yes, that is correct. It is not a mistake or a typo. With so many Americans feeling the financial crunch today it is possible to get some assistance from your credit card company.

If you have made some mistakes and find yourself in financial trouble, you are like many Americans in today’s economy. You may have over extended your credit or just simply taken on too much debt. Don’t expect your credit card company to forgive the debt, but they might be willing to take forbearance and help you to try and recover from the problem.

If you have lost your job or have had some other financial emergency such as a medical issue, you may find yourself in financial position that needs some help. Many credit card companies are granting one or more types of forbearance for hard-pressed cardholders.

Forbearance is a postponement of payment and may last from 6 months to a year (or possibly longer). It may also include reducing your minimum monthly payment, reducing your interest rate or even eliminating some fees that were assessed on your credit card. Forbearance does not eliminate your debt but it may put it off so that you can try and recover from your financial difficulties. The Credit Card Company may report the delay to the credit bureaus but they might be willing to hold on the reporting. If you have had good credit then they may be more willing to work with you. If you have bad credit you may have to dispute this information later if it is reported incorrectly. This is only a temporary solution to your problem because eventually you will have to start paying back the credit card balance.

Credit card companies will try to work with you if you can provide them with the reason for your problem, giving them a chance to see that without the forbearance you might be forced to consider bankruptcy. Since credit card balances are unsecured loans and the credit card companies take a chance to lose everything if you file and are granted a bankruptcy, they often will try to work with you. This keeps their money coming in and keeps you out of bankruptcy court.

The secret is to not wait too long. If you see a financial problem coming, then contact your credit card company. This gives your more chance and more opportunities for your credit card company to work with you.

This will not fix your problem, only solving the cause can fix the problem. If you lost your job, you will need to get a new one. If you had a medical issue that caused the financial problem, then getting that problem either resolved or under control will help you get back on track. Whatever the reason, you are only getting some temporary help to get you back under control.

There are several possible solutions to your credit card debt. Which solution you choose will depend on your situation and how thorough you research the possibilities. Options include loans, debt settlement, debt management, and bankruptcy.

One possibility you might have considered when seeking help with paying your credit card debt is some type of loan. There are two types of loans that could be used: a home equity loan or a debt consolidation loan. Home equity loans are taken against the equity of your home. Because your house is used as collateral, you will be able to get a better interest rate. This is also risky, because now you could lose your home if you default on the loan. A debt consolidation loan does not require you to have a home, and it will usually carry a higher interest rate. Both types of loans require good credit scores to even qualify, let alone get good rates. Also, it is rarely a good idea to get new debt to pay off other types of debt.

Debt settlement is a much different option. Debt settlement can sound very appealing because settlement companies will promise to get you a great reduction of your debt. They will also charge you large fees which include a monthly fee until you are able to pay the settlement amount in full. Once you have gone through with it, you will have to pay taxes on the amount of forgiven debt. Often, fees and taxes will make up for any gain you received by settling your debt. On top of that, your credit score will likely suffer because of debt settlement.

Unlike a loan, a debt management plan allows you to keep your debt with your original creditors. Unlike debt settlement, a debt management plan provides you with the opportunity to pay off your debt in full, therefore not having to pay additional taxes. The way a debt management plan works is that the debt management company works with your creditors to reduce the interest and fees that you owe. More of your monthly payment will be going towards paying off your debt. You will pay one monthly payment to the debt management company who will then distribute your money in a way that will benefit you. You will be able to watch your balances diminish as you diligently make your payments. This will provide you with the accountability and support you need to pay off that pesky credit card debt.

A final option for credit card debt is bankruptcy. This option is not for everyone as only the most severe situations qualify. Also, a bankruptcy will remain on your credit score for 7 years, disqualifying you in many cases from future purchases on credit. If you think that bankruptcy is your only option, consider talking to a credit counselor before you talk to an attorney to see if there might be a better way to work on your credit card debt.

If these options leave you confused or overwhelmed, talk to an accredited credit counselor. They can walk you through these possibilities and make recommendations based on your situation. Being informed will help you make the best decision.

There are several possible solutions to your credit card debt. Which solution you choose will depend on your situation and how thorough you research the possibilities. Options include loans, debt settlement, debt management, and bankruptcy.

One possibility you might have considered when seeking help with paying your credit card debt is some type of loan. There are two types of loans that could be used: a home equity loan or a debt consolidation loan. Home equity loans are taken against the equity of your home. Because your house is used as collateral, you will be able to get a better interest rate. This is also risky, because now you could lose your home if you default on the loan. A debt consolidation loan does not require you to have a home, and it will usually carry a higher interest rate. Both types of loans require good credit scores to even qualify, let alone get good rates. Also, it is rarely a good idea to get new debt to pay off other types of debt.

Debt settlement is a much different option. Debt settlement can sound very appealing because settlement companies will promise to get you a great reduction of your debt. They will also charge you large fees which include a monthly fee until you are able to pay the settlement amount in full. Once you have gone through with it, you will have to pay taxes on the amount of forgiven debt. Often, fees and taxes will make up for any gain you received by settling your debt. On top of that, your credit score will likely suffer because of debt settlement.

Unlike a loan, a debt management plan allows you to keep your debt with your original creditors. Unlike debt settlement, a debt management plan provides you with the opportunity to pay off your debt in full, therefore not having to pay additional taxes. The way a debt management plan works is that the debt management company works with your creditors to reduce the interest and fees that you owe. More of your monthly payment will be going towards paying off your debt. You will pay one monthly payment to the debt management company who will then distribute your money in a way that will benefit you. You will be able to watch your balances diminish as you diligently make your payments. This will provide you with the accountability and support you need to pay off that pesky credit card debt.

A final option for credit card debt is bankruptcy. This option is not for everyone as only the most severe situations qualify. Also, a bankruptcy will remain on your credit score for 7 years, disqualifying you in many cases from future purchases on credit. If you think that bankruptcy is your only option, consider talking to a credit counselor before you talk to an attorney to see if there might be a better way to work on your credit card debt.

If these options leave you confused or overwhelmed, talk to an accredited credit counselor. They can walk you through these possibilities and make recommendations based on your situation. Being informed will help you make the best decision.

Depending on how much debt you owe, your monthly payments might be too large. You may struggle with paying the minimum amount due on your credit card bills, especially if that amount has gone up due to a raise in interest rates or changes in the law. If this is the case, there are several places you might look for help. Bankruptcy, debt settlement, and credit counseling are all possible, though certainly not equal, options.

If you struggle with making your credit card payments, you might be considering bankruptcy. Many people, however, go to this option more quickly than they ought. Bankruptcy will hurt your credit and prevent you from qualifying for buying a home or a car for the next several years. If you are in a case of extreme debt and have not been successful with other methods, it might be right for you.

Another option that you might be considering if you are unable to pay your credit card bills fully is debt settlement. Debt settlement can hurtful to your credit history. If you decide to work with a debt settlement company, you will be charged large fees for their services. They often require their payment up front as well. Any forgiven debt that they are able to get for you is also subject to taxes which will greatly cut into the savings you might have had. Debt settlement is not the bargain that it seems and is rarely worth it.

A third and more versatile option that is available to help you with credit card payments is working with a credit counselor. By talking to an accredited credit counselor in person or on the phone, you will be able to get a better assessment of your current situation. The counselor can walk through the decision you have and let you know the pros and cons of each option. They can answer the questions you have so that you can make an informed financial decision.

Most counselors will not advise bankruptcy or debt settlement. Instead, they will probably show you a more beneficial option: the debt management plan. A debt management plan allows you the opportunity to pay off your debt in a reasonable amount of time and often to lower your monthly payment to a more reasonable level. This can happen because the debt management company works with your creditors to get you better interest rates and lower your fees. The debt management plan will also allow you to pay one convenient monthly payment to cover each of your credit card bills.

The best step you can take to getting help with your credit card payments is to talk to a credit counselor. They deal with situations similar to yours on a regular basis and know exactly what you are going through. They can advise you on what steps you might be able to take to lower your interest rate which is the contributing factor to high minimum payments, as well as deal with the underlying problem of the debt itself.