What To Expect When Using A Debt Relief Agency
A debt relief agency can provide advice about debt problems and file chapter 7 or chapter 13 bankruptcies. An attorney or debt collection agency should be sought when you are looking for help handling your bankruptcy case. You need to use counselling when you feel overwhelmed and you’re struggling to make monthly payments to your creditors. So when you can’t deal with all your creditors it’s time to get in contact with someone that can offer you solutions.
It’s important for you to know that most “non profit” counseling services obtain their funding through fees paid by credit card companies based on the amount of money collected. However, you should also know that you can deal with all your financial problems by yourself if you get well orientated and do plenty of research. But I also should tell you that if you don’t believe you can do it by your own then it’s best to contact a debt relief agency for help. If you’re considering bankruptcy of course you can file a bankruptcy by yourself and it can be another option that gives you true debt relief. It encompasses all of your debts: mortgages, auto loans, credit cards, medical bills, utilities, rent and taxes. Actually, about 5% of bankruptcies done now are without an attorney, you just have to be very careful with the current law. Your bankruptcy case may also involve litigation. You’re generally permitted to represent yourself in litigation in bankruptcy court but only attorneys, not bankruptcy petition preparers, can give you legal advice.
However, if you are looking for a debt relief agency to assist you because you prefer to do so then it is important to know what the law says about debt relief agencies and what the attorney offers you. The law requires an attorney or bankruptcy petition preparer to give you a written notice or contract specifying what the attorney or bankruptcy petition preparer will do for you and how much it will cost. Ask to see the contract before you hire anyone.
The following information will help you understand what must be done in a routine bankruptcy case. Helping you to evaluate the service you will need. Although bankruptcy can be complex, many cases are routine. Before filing a bankruptcy case, either you or your attorney should analyze your eligibility for different forms of debt relief available under the Bankruptcy Code and which form of relief is most likely to be beneficial for you. Be sure you understand the relief you can obtain and its limitations.
To file a bankruptcy case, documents called a Petition, Schedules and Statement of Financial Affairs (as well as in some cases a Statement of Intention) need to be prepared correctly and filed with the bankruptcy court. You will have to pay a filing fee to the bankruptcy court. It is very important and relevant that the debt relief agency explain to their customers, once the case starts, a required meeting of creditors must be attended and questions by a court official called a trustee must be answered.
In the past contacting a debt relief agency was a scary thought as they were considered sharks. Things have now changed with a debt relief agency having an air of respectability due to them having to abide by rules and regulations. Don’t be afraid, contact a debt relief agency today to help you!
