You know you're behind on your bills. You want to pay them, but you just don't have the funds.
If you're looking for debt relief, one thing you want to consider is working to curb your spending. This may not get you out of debt, but it can help you plan for the future -- after bankruptcy, debt consolidation or whatever you end up doing -- so that you don't get into debt again.
You think that you're going to go into foreclosure in the near future. Maybe you just lost your job. You got a part-time job to replace it, but you know it's not enough to pay the bills. Of course, you believe you'll have another full-time job in the future, but you anticipate a few months with far less income. If you miss all of those mortgage payments, you know you may lose your home.
From the outside, a foreclosure sounds simple. The bank essentially bought the house by providing the loan. The homeowner then stopped making payments on the loan, so the bank decided to take the house and sell it to recoup their costs.
A question frequently asked of consumer bankruptcy law attorneys is whether a bankruptcy wipes out student debt. Unfortunately, in all but the rarest circumstances, it does not.
One of the common misconceptions about using bankruptcy to discharge debt is the notion that filing for bankruptcy means that one must offer up all of their property. While it is true that bankruptcy requires borrowers to make sacrifices in order to discharge debt, the aim of the bankruptcy is system is to give borrowers a fresh financial start, not leave them penniless and homeless.