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Legal advice critical for those struggling with debt

If you’re struggling with debt, you’re likely struggling alone. Most people don’t seek legal advice or other support for their debt issues until they find themselves backed into a corner, or the stress becomes overwhelming. But well-timed professional help can save you time, money and stress. Here are three signs that it’s time to consider consulting an attorney to answer your questions about dealing with debt.

Seek legal advice if creditors are threatening legal action

Depending on the nature of the debt, creditors have a variety of avenues for collecting outstanding debts, including pursuing you in court, garnishing wages, and placing liens against your property. It’s tough to know which potential consequences are likely or unlikely, and what the long term implications might be on your credit and finances. Sound legal advice can help you determine the best action to take to protect yourself.

Consider legal advice while you’re creating a repayment plan

If you owe more than one creditor, you’ll have to make choices about who you pay, how much, and when. Understanding your legal rights can help you identify the best places to put your money to eliminate your debt while protecting what assets you have. Should you later choose to file for bankruptcy, having legal advice up front will place you in a better position to keep assets that are important to you.

If you’re losing sleep, legal advice may be your solution

Lastly, if your debt situation is keeping you up at night, you don’t have to go it alone. Simply knowing that you have a professional in your corner who can make sure you get the best possible outcome can set your mind at ease. Get all your questions answered, feel more in control of your financial future, and take the first steps toward setting yourself on the right path. All of these will reduce your stress level, not to mention help to correct your financial situation.

Is it time for you to seek legal advice?

For advice on debt elimination and the role bankruptcy can play in rebuilding your finances, contact us for a free consultation with an Ohio bankruptcy attorney. Click here to schedule your consultation.

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Can I avoid foreclosure through bankruptcy?

If you’ve received a notice that your mortgage lender is initiating foreclosure proceedings, you’ll likely do anything to put the brakes on that process. Avoiding foreclosure is a major reason that people come to us to talk about bankruptcy — they’re looking for the solution to save their house.

Based on your situation, bankruptcy may or may not help you avoid foreclosure. In order to get the best outcome, it’s important to understand what protections are available against foreclosure.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy typically offers a full discharge of your outstanding debts without need for repayment. When you file for Chapter 7, you fall under the “automatic stay” provision, which mandates that all creditors stop collections actions until your case is discharged (complete.)

This automatic stay can delay a foreclosure, but may not allow you to completely avoid it. The mortgage lender can still request permission from the court to proceed with a bank sale. Whether or not such a request would be granted is hard to guess. However, filing Chapter 7 will allow you to avoid foreclosure for the next 60 days or so. During that time you might be able to sell your property or work with your lender to find a more palatable solution, so it can be a valuable reprieve.

Chapter 13 Bankruptcy

The other kind of bankruptcy is Chapter 13, which requires repayment of some portion of your outstanding debt. Chapter 13 can be a good choice for avoiding foreclosure. The process for Chapter 13 requires establishment of a payment plan with your creditors. In other words, you’re working with your creditors to find a more workable situation.

Many homeowners facing foreclosure find that the payments required to maintain the payment plan are burdensome. Some bankruptcy proceedings may allow for a loan modification on the mortgage, which could bring down the monthly payment cost. And Chapter 13 also offers the automatic stay protection, ensuring at the very least time to come to a positive solution.

To avoid foreclosure through bankruptcy, seek out an attorney NOW

If you’re facing foreclosure, there’s no time to lose. An in-depth discussion with an attorney will allow you to make educated decisions about bankruptcy as a tactic to postpone or avoid losing your home. Don’t make the mistake of waiting too long. Save money and time by seeking bankruptcy help from a reputable Ohio bankruptcy attorney today. Contact us for your free, confidential consultation today.