debt relief plans just for you

As a bankruptcy attorney office, we deal with many different scenarios regarding debt and how to help people get out from under that burden. We know that sometimes, bankruptcy is just not the best option for you and your family. There are other options available to help you get through a financial crisis. This information is dedicated to those options.

If you do not have the funds on hand to make a lump sum settlement, an arrangement can still be reached. The percentage of discount may be lower but you can still make a settlement. This will stop lawsuits and can head off wage or bank account garnishments.

If you think this is a possible option, you will want to work with an attorney who is experienced in debt settlement and has a proven track record of making deals with creditors.

Additional unemployment

If you have been or are anticipating receiving the additional unemployment payments, and you do not need them to supplement your existence, then now is the time to use them to help reduce your debt.

If you do not need to live on the additional payments, you can save those payments to reach a lump sum that you can use to settle your debts. You can also make additional payments on your higher interest rate credit cards. You can use the money to stock up on necessities like non-perishable food.

Another use for this money is to use it to get out of debt for good. If you are out of work, your income has decreased. Now may be the ideal time for you to file bankruptcy. If your household income was too high to qualify to file a chapter 7 when everyone was working, it may be low enough now to file a chapter 7 and get your fresh start. The time to file is while you are out of work. The bankruptcy filing will eliminate your obligation on monthly credit card bills and past-due medical bills. This will then eliminate potential lawsuits for collection on these bills before they are filed. If you eliminate the debt now, when you get back to work, you will have more income to create a savings account.

Stimulus checks

The government is hoping that you will spend these stimulus checks on shopping sprees to stimulate the economy. This is short-sighted and not the best option for your family. Yes, you will have a new TV or other item but you will still be in debt and struggling.

Instead, you can use that check to file for bankruptcy. The government will have paid for most or all of the cost for the filing, and you will be debt-free. Then, as you return to work or continue in your current job, you will not have the stress of thousands of dollars of debt hanging over your head. This will help you save for a rainy day or even a modest vacation.

Tax Refunds

During the year, you have taxes removed from your paycheck. When you file a tax return and receive a refund, it is the repayment of the interest-free loan that you have made to the federal government. Or, if you get earned income credit or child credit, it is money you receive from the government that you did not pay. It is essentially a large payment that allows you several options to better your financial situation.

Depending on the size of the refund, you can use it to settle your debts – see above for that option. You can also use the funds to file for bankruptcy. This is using the money that you have saved – through the excess of taxes having been removed from your paycheck or from money paid to you by the government – to help you can get out of debt and get a fresh start. This will allow you to be able to start to save some of the money you earn in a 401(k), 403(b), or an IRA to protect your retirement.

You can also look at reducing the amount of taxes withheld from your paycheck so that you get more money in each pay but less of a refund of your money after filing your tax return. This will help your family monthly instead of once a year. If you have discharged your debt in bankruptcy, your family will have greater financial freedom and less stress the whole year-round.