| As unpleasant as most people find the idea, there are | | | | need to make to the agency each month. They will |
| situations involving debt and personal finance that | | | | then disburse the funds according to the |
| simply cannot be remedied through cost cutting and | | | | arrangements they made with your creditors. Some |
| extra jobs. Perhaps your or your spouse has | | | | agencies charge a fee for handling your personal |
| experienced a lengthy period of unemployment, or | | | | finances, but some local organizations provide similar |
| there have been huge medical bills to deal with. The | | | | services for free. Many agencies, especially the ones |
| mortgage company is threatening to foreclose on | | | | sponsored by non-profit organizations, will require you |
| your home, the bank wants to repossess your car, | | | | to attend a class or do coursework on personal |
| and the phone rings non-stop from people calling to | | | | finance and credit to help you prevent the problem |
| collect past due payments on your credit cards. No | | | | from recurring. |
| matter how hard you have tried, you have made | | | | If these agencies cannot help you with your personal |
| little progress in solving your personal finance | | | | finances, it may be time to consult with a bankruptcy |
| problems. In such scenarios, bankruptcy may be your | | | | attorney. He or she should offer a free initial |
| best choice. | | | | consultation. You will need to bring complete records |
| Before you decide, however, you might want to | | | | of who and how much you owe and how far behind |
| consult with a credit counseling service. These | | | | you are. Do not try to conceal any debts or hide any |
| agencies can work with your creditors and usually get | | | | income. Providing false information in a bankruptcy, |
| them to reduce or waive interest, cycle accounts to | | | | such as concealing assets, is a criminal offense. The |
| get them current, and get your payments reduced. | | | | attorney will review your personal finance information |
| Staff at these agencies is well versed in all areas of | | | | and advise you on how to best proceed. |
| personal finance, and they can often find a solution | | | | Normally, you will be able to keep your home and |
| to your debt problems that does not involve | | | | cars, provided you continue to make the payments |
| bankruptcy. | | | | on them, as well as your personal property. Certain |
| A credit counseling service will want you to make a | | | | dollar limitations do exist, but your attorney can |
| serious commitment to getting your personal finances | | | | advise you on them. They are quite liberal, and few |
| back on track and reducing your debt. You cannot | | | | consumers will approach these limits. |
| just engage their services and then continue to make | | | | You can restore order to your personal finances and |
| new charges. But they are often an excellent choice | | | | free yourself of debt through bankruptcy, and with |
| if your finances are out of control and you are | | | | time you can rebuild your credit history. But every |
| drowning in debt. | | | | other option to resolve your personal finances should |
| Different agencies have different methods, but most | | | | be exhausted first, making bankruptcy the final |
| have certain similarities. They will negotiate with all of | | | | option, not the initial one. |
| your creditors and arrive at a total payment you will | | | | |