Business law

While the economy and unemployment rates have improved over the years, there is still a significant portion of people dealing with high amounts of debt. Debt can make it difficult to keep afloat financially. It can be it impossible to make your monthly mortgage payment. If you are struggling financially, it is not too late to find a solution. Working with an attorney can keep you out of foreclosure and can help you in the following ways.

Evaluate your bankruptcy options
Bankruptcy sometimes gets a bad reputation, but it can be extremely useful when you are struggling financially. Entering into bankruptcy can make your monthly debt payments more affordable. It can also stop harassment from local debt collectors that often make you feel even worse. When you work with a bankruptcy lawyer, you have a higher chance of being granted a bankruptcy.

There are two common types of bankruptcy. One of them allows you to completely erase all of your debt and essentially start over. Another one of them allows you to combine all of your debt, including your mortgage, and make one affordable payment every month. The type of bankruptcy that you qualify for will depend on your financial situation, the amount of debt, and the type of debt that you owe. Work with your attorney to better understand the different types of bankruptcy.

Refer you for financial advice
Many homeowners do not understand the terms of their mortgage. They also do not understand their interest rates and what is considered a good interest rate versus a bad one. Having too high of an interest rate on your mortgage can significantly increase your monthly payments, thus making it harder to make them. Overall, there are approximately 7.4 million mortgage borrowers in the U.S., with rates of 4.5% or higher who would qualify and benefit from refinancing their mortgages. The general idea is that you want to increase your income and decrease your payments. Also, avoid getting a mortgage that you cannot comfortably afford. The common rule of thumb is that your monthly mortgage payment should not exceed 28% of your gross income.

Dispute inaccurate debt
Some debt, even inaccurate debt, can follow you for life. For example, if you were married and a spouse took out a loan on a vehicle that was entirely yours and you later divorced, you might not be responsible for that debt. However, you will have to work with an attorney to dispute this debt. Some people have high amounts of medical debt, despite carrying health insurance. Sometimes, this debt can also be disputed with debt legal services. Just make sure you are getting the right type of legal help.

Monitor your credit report
A lot of people with high amounts of debt also have poor credit. This often results in a never ending cycle. If you have poor credit, you cannot get low interest rates on purchases like a car or house. It is important to regularly monitor your credit report, even if you have poor credit. Don?t avoid wrongful additions to your credit, simply because the rest of it is bad. If you notice something on your credit report that is not accurate, you can work with your attorney to dispute it and to eventually have it removed. In many cases, you can do this even if it has been years since the credit report.

There are many Americans struggling to keep up financially. Bankruptcy might be an option, depending on your debt and specific financial situation. Working with experienced debt lawyers can be very valuable when you feel like you are drowning in debt, even when it comes to business law disputes. They can help with many financial situations, including entering into bankruptcy, disputing inaccurate credit reports, and referring you to financial consultation.

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