When choosing an attorney, look for one who has extensive experience in successfully helping clients avoid bankruptcy. An attorney can help you better negotiate with creditors and create a more manageable repayment plan. A knowledgeable bankruptcy lawyer can also help you understand your rights as a consumer and assess the statutes of limitation that may apply your debts.
The challenges of student loan debt
Bankruptcy is a difficult and complicated process. If you are thinking about declaring bankruptcy because of large student loan debts, a lawyer can realistically evaluate your chances of having debt discharged or restructured. Keep in mind that it is more challenging to obtain relief from student loan debts in bankruptcy, compared with other types of debt. An attorney can help you negotiate with private or federal student loan servicers to avoid bankruptcy or structure a more flexible repayment plan.
Bankruptcy should not be undertaken lightly, but if you decide that bankruptcy is in your best interests, student loans add to the complexity of a bankruptcy case. Be sure to hire a bankruptcy attorney who has handled such cases.
Beware of debt consolidation companies
Debt consolidation can be very tempting when you are in a financial bind. Debt consolidation companies understand that consumers who are struggling financially are vulnerable. Remember if it sounds too good to be true—it probably is. Many of these companies make misleading claims, and promise a quick fix to your financial woes.
Some key approaches to avoiding bankruptcy
According to U.S. News and World Report, some key approaches to avoiding bankruptcy include the following:
- Negotiate your debts with creditors
- Sell your property, such as jewelry or real estate
- Borrow money from your family and friends
- If you own a home, restructure your mortgage
- Make lifestyle changes that involve sacrifices, such as traveling less often or not at all
However, in case bankruptcy is the best or only answer for you, it is important to create an asset protection plan with your attorney. Never try to create such a plan by yourself. You run the risk of hiding assets or making fraudulent transfers of property. Consult an attorney to be sure you are protecting assets in accordance with all laws.
Get in touch with a knowledgeable Texas bankruptcy lawyer today
If you are struggling to make ends meet, there is help available. Before filing for bankruptcy, consult an experienced Texas bankruptcy attorney at Marcos D. Oliva, P.C. who can evaluate your unique situation and develop a strategy for moving forward.