Uncle Sam
Arrange Your Own Credit And Debt Counseling - Keep Uncle Sam Out Of It!
If you've been thinking about filing for bankruptcy you should consult a Phoenix credit and debt counseling service first. Filing for Chapter 7 protection might sound like the answer to all your prayers but with the recent changes in the bankruptcy laws you could just be opening up an even bigger can of worms.
In order to automatically qualify for protection under Chapter 7 guidelines your annual income has to fall at or below the median income for your state. If it does, fine, your case will proceed accordingly. However, if your income is higher then you're going to need a lot of additional paperwork and research which will require the services of a Phoenix bankruptcy attorney.
If, your petition fails to get approval on your application for Chapter 7, the court will order you to proceed with a Chapter 13 petition which will legally require you to participate in a court appointed debt counseling program. Not only will you be required to participate, but the court will be monitoring your progress every step of the way.
That means that now you will have a representative of Uncle Sam looking over your shoulder at all times while you make arrangements with your creditors, looking over your shoulder at all times to make sure you honor those arrangements, and if you miss one single payment your creditors will all be legally allowed to come after you to immediately collect on your debt.
So you can see that while the thought of filing for Chapter 7 bankruptcy protection might easily take care of all of your problems, once you start down that path, you're locked in until your debts are cleared, one way or the other. Uncle Sam already has enough control of your finances. Do you really want him breathing down your neck every week to make sure you pay your creditors first?
Filing for Chapter 7 may very well be the best solution to your problem, however, avoid all of the government involvement if you consult with a Phoenix debt counseling service first, these people are experienced negotiators able to work with your creditors to establish a repayment plan that will benefit all parties, even Uncle Sam.
About the Author
Elle Wood suggests a Phoenix bankruptcy attorney for Phoenix debt and credit counseling
Salam Cafe: Uncle Sam
