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Is Bankruptcy or Debt Settlement The Right Decision For You?

Tulsa Bankruptcy Attorney | Is Bankruptcy or Debt Settlement The Right Decision For You?

When people are faced with hard financial situations they have to consider if they should file for bankruptcy or work out a debt settlement. There are positives and negatives to each situation. If you are considering filing for bankruptcy, then you need to determine if you are going to file for Chapter 7 or Chapter 13 bankruptcy. Chapter 7 bankruptcy involves liquidating your assets while Chapter 13 involves debt restructuring and repayment. When you file for bankruptcy a certain amount of your debt will be eliminated.

If you are considering filing for bankruptcy you should seek out a Tulsa Bankruptcy attorney who will be able to answer all of your bankruptcy questions. When seeking out an attorney’s advice you need to be open to discussing your entire financial situation and be willing to open up all of your financial records. Your attorney will then be able to make a recommendation to if bankruptcy is going to be the correct path for you to follow. In most cases either filing for bankruptcy or reaching a debt settlement will be the correct path for you to take.

Is Debt Settlement The Correct Solution For You?

Debt settlement is when you are working directly with the lender in order to reduce the lump sum that is owed. The creditor agrees to accept a lower amount than what is owed. An example of this is that many Hospitals are willing to work with you to reduce your debt by as much as 80% if you can prove that you meet their financial criteria.

In some cases, debt relief companies will set up an escrow account for the consumer and all of the money for the payment will reside in this account. This way you are not directly paying the creditors. Then once a certain amount of money is in the escrow account an amount is negotiated with your creditors in order to pay them off.

Many creditors are willing to work with you in order to prevent you from filing bankruptcy in order to get a percentage of what they owe you. It is important that throughout this entire process that you are talking with your creditors and with debt relief companies to come up with a solution that is in both of your best interest.

How People End Up In Debt?

Many individuals face financial uncertainty because of unexpected medical bills. It is estimated that more than a quarter of adults struggle to pay their medical bills. These medical bills can often to relate to unexpected visits to the emergency room. This could also involve meeting your deductibles and having to pay for medical expenses with cash. Paying for prescription drugs can get expensive fast.A vast majority of those considering bankruptcy are facing large medical debt.

Job Loss

When you have a family and are considered the head of the household facing job loss is not an easy thing. You will often be faced with what are going to be the next steps that you need to take in order to provide for your family.

When facing unemployment, it is very tempting to start taking on debt. This debt is most often taken on in the form of credit cards. When credit card debt mounts up and there is no income that is being brought in to pay it off this can lead to stress.

When faced with unemployment you are forced to make difficult decisions regarding healthcare and childcare. Should you continue to pay for health insurance? How can you afford childcare?

With debt mounting up. You might be forced to consider bankruptcy or debt settlement until you are able to be employed again.

Not Enough Savings

Is it is estimated that 69% of Americans have less than $1,000 in their savings account? This means that when faced with an unexpected expense many Americans do not have that much to fall back on in their bank account.

We understand that many Americans are already living paycheck to paycheck and that when faced with an unexpected financial situation such as a job loss or an unexpected medical bill that can put an individual over the edge.

This is why it is good to establish a budget and start a savings account. This way you will have something to fall back on when times get hard.

However, we also understand this is sometimes how life ends up. If you are considering filing for bankruptcy, we want to help you.

Divorce

Many difficult financial situations can come up with a divorce happens. One of the most difficult things is the splitting of incomes. In many cases, one spouse is more prepared to make it on their own than the other spouse is. The spouse who is less prepared to face divorce could face some difficult financial situations. This could mean facing paying off student loans that their former spouse was covering before. This could even be facing paying for child-support with money that you do not have.

Hanson & Hanson Law Firm understands these type of situations. If you feel like you are facing bankruptcy and need help we want to help you out.

Hanson & Hanson Law Firm Is Here To Help

If you are facing a difficult financial situation and you are not certain where to turn. We would invite you to give us a call at Hanson & Hanson as we have experienced attorneys who are willing to sit down with you and come up with a solution that will work with your financial situation.

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