Evan Vitale

Evan Vitale – Avoiding Bankruptcy

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By Evan Vitale

Before you throw in the towel and move into the mind frame that bankruptcy is your only way out, there are some considerations and options that you should consider in avoiding bankruptcy.

Yes, for some, bankruptcy is the only answer. However, many people choose bankruptcy as the only “fix all” option. Bankruptcy should never be your first choice. It should only be used when you have fully exhausted all other options. Remember, in some cases, bankruptcy could mean loss of your home, automobile(s) and other personal assets along with severe limitations to your credit.

Discuss your options with your attorney. In some cases, your law firm can help you work out a payback plan, reduce penalties and interest and, perhaps, negotiate a settlement so you can pay back your debts quicker.

Debt consolidation; debt settlement and/or agreements with creditors are all in your best interest. In almost all cases, creditors are willing to work out a payment plan rather than force you into bankruptcy. Some individuals have been able to work out a payment plan on their own or with the assistance of a non-profit credit counseling service.

The best way to avoid bankruptcy is by practicing responsible financial management. Live within your means. Cut your expenses, especially in the areas of entertainment (movies, eating out, cable TV, etc.) and eating out (i.e., take your lunch with you to work). You can do it if you really put your mind to it and look for ways to cut your costs. You’ll feel better about paying off your debt and, eventually, you’ll be back on your feet financially. Over time, your credit will improve.

Remember, bankruptcy is a very serious matter and it stays on your credit record for up to 10 years. Be sure you consult with an attorney specializing in bankruptcy before making any quick decisions about bankruptcy.

Evan Vitale – Understanding Bankruptcy

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By Evan Vitale

Sometimes, depending on your situation and advice of an attorney, you may feel like there’s no way out other than filing for bankruptcy.

However, bankruptcy isn’t a “one size fits all” situation. There are some other factors that weigh in on your bankruptcy including your debts and assets.

There are three primary forms of personal bankruptcy for an individual: Chapter 7, Chapter 11 and Chapter 13. Here’s a brief explanation of each:

– Chapter 7 bankruptcy protection allows an individual to get rid of most of their debts and wipe the slate clean. However, this form of bankruptcy may include loss of property and, most likely, a lower credit score. In some cases, a Chapter 7 bankruptcy is also referred to a “liquidation” or “straight bankruptcy” in which a debtor’s assets are sold and creditors receive payment.

– Chapter 11 bankruptcy is primarily for businesses, but it could also affect you if you’re the owner and major shareholder in the company. Chapter 11 is intended primarily for the reorganization of businesses with heavy debt. Although it’s uncommon, some individuals may file for Chapter 11 as well.

– Chapter 13 bankruptcy is the most common form of bankruptcy protection for an individual. Here, rather than wiping the slate clean, the individual might be forced to pay off part of the debit. The positive side of this form of bankruptcy allows the individual to keep a home; land; a car and other types of personal property.

Before deciding on bankruptcy, it is best to discuss your personal financial situation include all debts and personal assets with your attorney. It could be, perhaps, that debts can be worked out individually and a payment plan established, which would help you avoid bankruptcy. However, in all bankruptcy matters, it is highly advised to meet with an attorney or law firm specializing in personal debt and bankruptcy.