Monday, May 2, 2016

Weighing Options Before Filling For Bankruptcy In Hawaii

By Frances Graham


When individuals experience financial difficulties, they need a solution to help them offset their debt. Although applying for insolvency can offer that reprieve, it is important for people to consider other options before they make that decision; it is a life changing decision; hence they need to be careful. If you are considering filing for bankruptcy in Hawaii, read these tips first to help you make an informed choice.

Side jobs or working overtime can help you collect some additional cash; sacrifice to get a job you can work at night, during holidays or weekends to supplement your income. If money allows, start a simple business which will also bring in more income. The extra money you accumulate can go a long way in helping you to offset your debt and still avoid filling for insolvency.

If you are the type that never budgets and does things on impulse, you need to stop and begin to budget for your expenditures. With a clearly laid out budget, you can identify areas you can adjust to save extra cash; it may include cutting on utility bills and rent by relocating to a smaller place. Likewise, you can change your fuel guzzler for a more fuel efficient car or walk to work and save on transport.

It is important to analyze your current financial condition and see whether it is reversible. People who have lost a job and qualify for employment benefits can use the money to clear debt; likewise, if you are sure you can get a job, you should wait. If you have been consistent in repaying your loans, the debtors can give you some time to get your finances in order.

You can negotiate directly with your lenders to lower your interest rates or adjust your payment plan if you tell you your plans to file for insolvency. Call your lender to see whether you qualify for loan modification program since most are unwilling to negotiate after filling. If you have a student loan, you can apply for forbearance or deferment on your loan which suspends the payments temporarily.

Some agencies in Honolulu, HI offer credit counseling and can help you talk to your creditors. If you do this alone, you will encounter many roadblocks; the agencies can help you with budgeting, and draw a realistic repayment plan, and assess if you need to proceed with filling. Look for honest agencies that do not give you false hopes or misadvise you.

It is never an easy thing to qualify for insolvency given the intricate procedures that are involved. For clients who have a regular source of income, they should consider the provisions of Chapter 13 where you are given a grace period of five years to repay. When you are allotted money for you basic need and pay for secured loans in full, the rest is paid to creditors.

Insolvency should be your last option after all others have failed to liberate you from a life of financial struggles and debts. A qualified attorney can help you to assess the above alternative and see which of them can bring you total reprieve. Do not be quick to file as the impact can be detrimental to your life.




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