A lot of us are struggling right now, and we have been for some time. And, while bankruptcy filings have largely been down this year, it does not mean that people are not considering it. But, what should one do before calling a bankruptcy attorney?
Communicate with creditors now
Do not wait until one’s bank account is empty or until the last check arrives. As soon as one begins to struggle, get creditors on the phone. First, this includes one’s landlord or mortgage company. Currently, there are many programs across the country that offer assistance to struggling homeowners and tenants, but the first step is often talking to the mortgage company or landlord to figure out if one qualifies. Second, call utility providers. Many states and municipalities are offering programs that can reduce utility costs or draw out payments over several months. Finally, call the other creditors. Like utilities, mortgage companies and landlords, many creditors are offering deferment options and other debt mitigation offers.
Assess one’s current economic reality
Now that one is on payment plans, mortgage payment deferrals, received rent subsidies, etc., assess one’s current economic reality. Figure out what is currently owed on everything, how late one is on every bill and figure out one’s current monthly obligations. Then, realistically, determine whether one’s current income, along with all of the deferments and subsidizes one receives, is enough to sustain until things get better. This does not mean living without eating for days on end, or turning off one’s water for weeks at a time. This simply means looking at one’s current situation and determining if it is sustainable.
If life is not sustainable, call a bankruptcy attorney
After one has reached out for help and gotten the help one needs, often that is enough to keep families going forward, hoping for life to get back to normal. However, for some, even after getting help, it is simply not enough. And, for those people, calling a bankruptcy attorney is needed. For most of these people, Chapter 7 Bankruptcy, will offer a lifeline and fresh financial start by eliminating nearly all of their outstanding debts. But, the key is to contact a Louisville, Kentucky, attorney immediately once one determines their financial life is just not sustainable.
