Sometimes life deals you a bad hand. Situations like unemployment, divorce, or health issues can lead to financial hard times. You've run up credit card bills, missed payments on your home and car, and now you're in trouble. What should you do? Watch this video clip to get the facts about debt and learn more about your options so you can protect the rights of you and your family. Access all the material referenced in this video and more on the Bankruptcy & Credit Repair Life Event page.

Debt Solvency and Bankruptcy Video Transcript

Sometimes life deals you a bad hand. Situations like unemployment, divorce, or health issues can lead to financial hard times. You've run up credit card bills, missed payments on your home and car, and now you're in trouble. The best thing you can do is to get the facts about debt - and know what your options are.

According to the Federal Reserve, 43% of Americans live beyond their means and carry too much debt. In fact, personal bankruptcies have doubled over the past decade.

Here's some suggestions to help turn around a bad financial situation.

• Create a realistic household budget. The first step to improving your financial situation is to assess the amount of money that comes in - and is spent - on a monthly basis. This budget will help ensure you can pay for the basics - like food and housing - and cut out, or cut down, unnecessary spending.
• Contact your creditors. Tell them about your situation, and try to work out a modified payment plan. Don't wait until your accounts have been turned over to a collection agency - then it's too late.
• Get Credit Counseling. If you fear you can't stick to a budget or can't work out a plan with your creditors, consider contacting a reputable credit counseling service. They can help you to create a debt repayment plan. Keep in mind that while some charge little or nothing for their services, others charge a monthly fee that can add up over time.

What if it's too late, and the collectors have started calling? Know your rights!

The Fair Debt Collection Practices Act prohibits debt collectors from harassing you, making false statements or using unfair practices when they try to collect a debt.

They also can't call before 8 in the morning or after 9 at night.

Additionally, they can't call your workplace if those calls are not approved by your employer.

Lawyers.com provides comprehensive information on this important consumer protection.

Should you consider bankruptcy? Think carefully, since a bankruptcy remains on your credit report for 10 years, making it more difficult to buy a home, acquire credit, or start a new business. But it can offer a fresh start to those unable to pay their debts. If you're considering bankruptcy, you should contact a lawyer who can walk you through the pros and cons of a bankruptcy filing.

Need help finding the right attorneys in your area? Visit the "Find a Lawyer" section on lawyers.com.

Have questions about other life events? Then go to the Life Events section on lawyers.com for more helpful video tips.

Related Resources on Lawyers.com^sm

- Contact Bankruptcy Lawyer in your area for specific legal advice, and read about Selecting a Bankruptcy Lawyer
- Need a form? Access a variety of do-it-yourself business and personal legal forms that meet your needs
- Read Bankruptcy FAQ and Bankruptcy Top 10, or access more Bankruptcy Basics articles and information
- Visit the Legal Forums for discussions on Bankruptcy topics
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- Legal Dictionary