Here’s how it works. If you have credit card debt of $10,000 which is being charged 18% interest, divide the interest charged, 18 into the number 72 (72 / 18 = 4). If you make no payments on your credit card, your debt will DOUBLE to $20,000 in 4 years! If you pay just the minimum, your debt will double to $20,000 in about 5 years! This is why you MUST pay more than the minimum on your credit card each month and also why you should try to get the lowest interest rate possible on a credit card!
It’s not uncommon for a person to get a car loan with a high interest rate and find that several years down the road they still owe well more than the car is worth. A dirvoce attorneys near me may be able to assist you in reducing the debt you owe down to fair market value. They’ll assess your situation and give you the particulars, but in general if you’ve owned the vehicle for more than 910 days, a Chapter 13 bankruptcy can reduce the debt to the fair market value and you will owe only what the car is actually worth.
What do you look for in a Bankruptcy lawyer? You should find one that has up to date on all laws and areas concerning bankruptcy. They should have some experience dealing with creditor to get them to leave you alone. You should find a lawyer you feel comfortable with knowing all of your financial information.
An IVA offers some of the same benefits as a Debt Management Plan. Your debts will be consolidated into affordable monthly payments, calls from creditors will cease, and once debts are written off – you can start afresh. Some of the disadvantages are more severe though. You will have to declare all assets and liabilities, and any excessive assets may be ceased as payment towards your debts. You may also lose any windfalls, inheritance, or bonuses that come you way. And, of course, the results of missing payments can be harsh. A failure to comply with the IVA can lead to forced bankruptcy.
Your goal might be to pay off a credit card debt by a specific time. Or pay a certain amount toward a card until it is paid off. What is really necessary it to devise a plan that will work to cause you to become debt-free. Being very specific about your objectives can help you realize your goals that much faster – and might help you recover from a crushing debt load sooner than you think.
Third, look for a law firm which has a team of lawyers working together. This is important because you would have good opinions and suggestions coming from a number of sources.
Free consultation. If the attorney is offering this service then it will give you the chance to see if he really is an experienced bankruptcy attorney by asking lots of questions.