Which debts need to be dealt with first?
Crippling debt affects innumerable people in Florida, and throughout the United States. Life comes with any number of expenses, not all of which can be planned for. It is all too easy for a sudden accident, unexpected family event or other change of circumstances to turn your life and your plans upside-down. To make things worse, once debt starts to mount, it continues to do so at an alarming and increasing rate.
One option is bankruptcy, as sometimes debt can reach a point where there is no conceivable way to clear it in your current situation. Bankruptcy allows you to begin anew, with a clean slate, by clearing a large portion of your debts. However, this is not the only way out of debt and it may be possible for you to regain financial stability by simply forming a comprehensive plan on how you will pay off each sum.
As this article on debt management explains, prioritizing the right debts can be extremely helpful. This may mean focusing on keeping up with payments for essentials such as your car and home. It is also important to keep on top of obligations like child support where possible, as you can face legal consequences for falling behind. However, it is not always possible to cover all these payments, so you may need to negotiate a more manageable repayment plan.
If you are faced with overwhelming debt issues, do not lose hope. While it can take a lot of time and effort to clear your debts, all is not lost and you do not have to handle the matter alone. An lawyer may be a particularly valuable ally during this period as he or she can advise you about the options that you can consider. Furthermore, your lawyer might also be able to assist you with contacting creditors and pursuing the best possible outcome to your situation.