When consumers are having financial difficulty due to falling behind on debt, they tend to try to deal with the most urgent debts first.  Or, in other words, take care of the the ones that scream the loudest.  This is the first in a series of posts about prioritizing which debts to pay first.

Your first priority always is to provide for your family.  So, this should be the first priority when deciding which bills to pay first.  This would be bills such as food and necessary medical expenses if your doctor requires prepayment.  Try the best you can to keep these payments to a minimum.

Second, pay your housing related bills such as a mortgage and/or rent.  Keeping a roof over your head is a very high priority and should be addressed immediately.  If you own your home, this means keeping your real estate taxes and insurance up to date as well unless included in your monthly payment.  If you cannot keep up with your mortgage or other housing expenses, you could face foreclosure and the loss of your home.

Depending on the state you reside, a foreclosure can take place through the court system or without the court’s involvement.  In many cases, foreclosure can be prevented if you take steps ahead of time.

If you receive notice of a pending foreclosure lawsuit or sale date, you should immediately contact an experienced consumer bankruptcy attorney to see if the possibility of a Chapter 13 bankruptcy could help you save your home.

You may have many more options than you think.

(Visited 274 times)

Tags: Chapter 13 bankruptcy, consumer bankruptcy atorney, falling behind on debt, financial difficulty, foreclosure protection, paying debts

This entry was posted on Monday, July 27th, 2009 at 3:36 pm and is filed under Chapter 13 bankruptcy, foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.