Fort Lauderdale Bankruptcy Blog

Financial challenges arising out of accumulated debt are sometimes so overwhelming that many people find it difficult to cope with the pressures and force themselves into filing for bankruptcy. Bankruptcy is definitely a foolproof way of eliminating debt but a person should consider a bankruptcy filing only after exploring the other debt relief methods that are available. In fact, the Federal Trade Commission strongly recommends that people try various debt relief methods before they decide to file for bankruptcy.

As the FTC suggests, a good way to begin debt relief efforts is to talk to creditors and try to put in place a modified repayment plan. In order to achieve a favorable result in these negotiations, debtors can seek help from credit counsellors or debt relief attorneys who, in turn, would represent you while engaging in discussions with the creditors. The usual result of these discussions is a monthly debt repayment plan that the debtor needs to adhere to. Another way of obtaining debt relief is by taking out a second line of credit. However, one needs to remember that in most such cases, one's home is kept as collateral.

As a law firm focused on helping individuals understand their legal rights under Chapter 7 and Chapter 13 of the bankruptcy code, one of the recurring remarks we hear is that people never thought they would utilize this option. In fact, a recent article addressed this very sentiment.