You have no doubt heard terms like “bankruptcy” and “foreclosure” thrown around plenty, especially in these times of economic hardship. Bankruptcy — in its various forms — is a way for consumers to receive financial relief in the face of overwhelming debts. This process will wipe away some, it not all, of your debts and give you a fresh financial start.

Even though you probably know the general idea behind bankruptcy, you might be left wondering: How do you file for bankruptcy?

The following are a few general steps you might consider taking in order to utilize this invaluable financial tool.

Exhausting All Other Options

Most financial experts will warn you that with bankruptcy comes a devastating blow to your credit score. While this hit is temporary, it will make obtaining lines of credit difficult in the future. This means that you might have to put off big purchases like a home or vehicle, because you may not qualify for the funding.

For this reason, bankruptcy is often referred to as “the last resort”. Make sure that there are no other ways to dig out of your financial hole. Sometimes, financial counseling or debt consolidation may provide you with the help you need to get your affairs in order. If not, it’s important to know: How do you file for bankruptcy?

Seek Legal Help

When you have exhausted all options, your first step should be hiring legal counsel. Filing for bankruptcy is a complicated process, and one that you do not want to take on by yourself. It is not impossible to go through the proceedings yourself, but when you do, you run the huge risk of overlooking a small detail, which can jeopardize your entire case.

Research local legal firms which specialize in bankruptcy. Also, check to see if you qualify for any programs which offer free legal aid.

Budget Accordingly

Ironically, filing for bankruptcy is not free. Various fees are tied in. Make sure that you have enough money to cover these expenses so that you can move forward with the case as planned.

Initiate The Bankruptcy

With your lawyer, you will decide which type of bankruptcy to apply for. You will have to appear in court and fill out paperwork, including a means test. Be prepared to be honest and forthright with the bankruptcy trustee. Lying about your financial system will bring only negative repercussions. The court will demand to know everything about your financial life.

Find Help At Seva Call

If your bankruptcy case is urgent, you don’t have time to waste searching for a lawyer. Use TalkLocal to find one that fits your needs immediately. Just type in what you’re looking for in a lawyer, and we’ll find them for you.

If you are one of the millions of American homeowners who have been faced with the difficult decision of foreclosure, we hope you realize that you are not alone. Many families and individuals are confronted with the reality that their home could be seized by their lender.

Home Foreclosure Costs

Home foreclosure costs are expensive for both parties involved. The Joint Economic Committee of Congress assess that “the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300” (Daily). There are practical approaches you can take to avoid a foreclosure. A number of companies across the country specialize in debt-consolidation as well as credit-rebuilding.

What You Can Do

Freedom Debt Relief.com focuses on credit-rebuilding. Prosper.com hinges their expertise on personal loans for debt-consolidation. This may help you improve your credit and get you back on the road to financial freedom.

A significant sum of businesses thrive on the promise that “We will definitely work with your lender” to either restructure your mortgage or lower your current interest rate. However, you must be vigilant and do your research before dealing with one of these particular organizations. There are a lot of so called “chop shops” or “boiler rooms” which aim to take advantage of a person’s bad situation in order to make a profit.

Another thought may include getting help from the government. The Obama Administration “offers banks incentives to modify mortgages” (Propublica). However, there are certain criteria that you must meet to earn governmental backing. If you are one of the unfortunate people facing foreclosure, you may qualify and be eligible for a modification. Many Americans may not know, but a loan modification is a change of the terms within your loan contract. Countless lenders refuse to change the fine print within their loan contracts but some are willing to work with their customers.

Many legal firms practice home foreclosure and similar types of law. However, home foreclosure costs remain high. A foreclosure or bankruptcy attorney might be able to work with your lender too. If these are two means you are taking into account, you could contact a few lawyers in your area and take advantage of their free consultations before opening your wallet.

Find Legal Advice

Depending on the foreclosure rules and regulations within your state, you may want to verify that bankruptcy is a worthwhile alternative. If you have questions and need immediate assistance, visit TalkLocal to find a lawyer who specializes in bankruptcy law. We will connect you with up to three lawyers in your area, within minutes.

The number of homeowners that are defaulting on their home loans has reached record high numbers. More people are filing for foreclosure than ever before. The process of foreclosure can be a long and drawn out affair. It also can be extremely stressful and confusing.

Understanding legal fees for foreclosure is important to ensure that you do not end up getting scammed by dubious fees. There are many different ways that a foreclosure defense attorney can bill you.

Hourly

The attorney that you carefully selected may want to bill you by the hour. This means that for every hour they spend working on your case, you will be billed at an agreed upon rate. This may be the best way to be charged. You might end up saving a great deal of money by opting for this method of billing. Your attorney will keep track of the work they complete during the hours you are billed for. You can see exactly what you are getting, but your fees could vary greatly.

Fixed Rate

A fixed rate has its benefits and pitfalls. You pay the attorney one time for the total cost of the case. The attorney might not be so apt to start working on a case they have already been paid for. There could be hidden fees in a fixed rate case, as well. Be sure to know what you are being billed for before you pay.

Monthly

A monthly rate from a foreclosure defense attorney is also a good option. You may save money, but it also may be difficult to spot hidden fees. Many attorneys do not prefer to be paid a monthly rate. Understanding legal fees for foreclosure is extremely important to ensure that you get the best deal possible.

Find a Reputable Lawyer

The importance of understanding legal fees for foreclosure cannot be stressed enough. Do not be afraid to ask questions if there are any fees you do not understand. TalkLocal can help you find the perfect legal defense attorney. We connect consumers with businesses that provide the services and products they so greatly need.