Bankruptcy Avoidance – Don’t Lose Control
In today’s economic climate, many persons are struggling to make ends meet and keep their head above water. Some may even feel as if they are drowning and are looking for other alternatives to help them solve their financial problems. For some the quick answer may seem to be to file bankruptcy, but in reality, bankruptcy is not the solution many think it is and they should attempt bankruptcy avoidance if at all possible.
Bankruptcy, especially Chapter 7, seems to many to be the way to start over with a fresh record. But this is not always the case. First off Chapter 7 has become very difficult if not impossible to qualify for. Since 2005 when laws were changed in regards to Chapter 7, very few people qualify for Chapter 7. Chapter 7 does eliminate unsecured debts, but it also forces the sale of your assets to repay creditors. This can mean that you will lose assets that you may wish to keep. These decisions are made at the discretion of a trustee appointed by the court to oversee your bankruptcy. This means that you lose control of making decisions about your finances and assets. Because of these factors, one needs to find solutions that involve bankruptcy avoidance.
Chapter 13 is another bankruptcy option that many may think will help them but again, it generally is best to find other solutions that allow for bankruptcy avoidance. Chapter 13 is easier to qualify for, but once again you lose control of your choices. The bankruptcy court will decide what they feel is best in your situation Chapter 13 bankruptcy involves making payments to a trustee and these payments must be made regardless of whatever personal issues may arise in the meantime. It is really not a beneficial way for a person faced with a bad financial situation to deal with their problems.
Generally the best way to resolve your financial problems is through methods that involve bankruptcy avoidance. There are other solutions for debts that one should investigate before deciding on bankruptcy. One should look for a solution that provides a means to decrease their debt balance while allowing them to keep control of your financial situation. You need to be able to protect your assets while eliminating monthly payments and protecting yourself from legal actions. If you are having financial difficulties it is best to look for services that can provide these types of services and let you stay in control of your financial situation.
