In the case of unpaid debts, it is recommended to call or email law firms before attempting any desperate measures, such as raiding the retirement plan, transferring property, or transferring credit card balances. One should consult bankruptcy attorneys before making such rash decisions.

Be sure to contact experienced bankruptcy attorneys if one has been sued or if a lawsuit remains pending. Once a judgment has been entered, the underlying debt becomes a secured debt and can be paid by seizing bank accounts, garnishing wages, or seizing assets.

Keep in mind that bankruptcy is not a good solution if you are elderly and/or do not have assets that a creditor can attach (social security wages, for example) or sixteen years old. Even if one has non-exempt assets and debts, such as student loans, an Atlanta bankruptcy attorney always advises not to file for bankruptcy.

It should be known that bankruptcy for individuals is of two types: Chapter 13 and Chapter 7. A Chapter 13 bankruptcy is also known as a “wage earner’s plan.” In this scenario, people can pay off the debts over a period of 3 to 5 years without paying any interest on the debt payment. One cannot be sued while using the Chapter 13 plan and does not even need to sell their property or assets to make payments. However, Chapter 7 is a liquidation bankruptcy, which helps people pay off their unsecured debts efficiently. Homes are foreclosed on only when they are not currently in mortgage payment, and even then one can work with an Atlanta bankruptcy attorney to modify these payments outside of the bankruptcy case.

Filing bankruptcy is not the only way to make debt payments. It is important to decide which mode to select, depending on the payment capacity of each one. One of them is loan modification. Bankruptcy attorneys can help you negotiate with lenders, reduce car and home payments, and also help you avoid foreclosure. Another mode that can be considered is debt settlement. When there simply aren’t enough credit card balances or medical bills to cover the cost of bankruptcy, debt settlement is an alternative. However, it’s important to beware of companies that claim to remove certain items from your credit report, as they are scams. Sometimes debt settlement ends up being ineffective, as one ends up paying a portion of the discounted payment to the debt settlement company every month, for “negotiating.”