Bouncing Checks: 4 Ways to Make Bankruptcy Easier to Manage

Bankruptcy can have a profound effect on your finances both now and over the next several years. While it may help you get out of debt, it can also make it harder to get credit for the two to three years that follow. 

The bankruptcy will also stay on your credit report for up to 10 years. What steps can you take to best manage bankruptcy?

Know Your Rights

It is important that you learn as much as possible about your rights as it relates to filing for bankruptcy. During a bankruptcy case, creditors are generally unable to contact you or move forward with a repossession or a foreclosure. 

If you get any demand for payment from a creditor, contact your attorney, the case trustee or the bankruptcy court immediately. Doing so may prevent you from making payments or otherwise enduring harassment that you don't need to go through.

Know What Type of Bankruptcy to File For

Chapter 7 bankruptcy is ideal for those who have unsecured debts and few assets. Chapter 13 bankruptcy is best for those with secured debts or debts that can't be discharged. 

Professionals, like those at Demers Gagnier Inc., may be able to help you understand your options and which type of protection from creditors is right for you.

Know the Requirements before You File

When you file for bankruptcy, you will be required to provide information about your income, assets and liabilities. 

You will also be required to go through credit counseling within 180 days of filing. Taking the process seriously and providing any information asked of you in a timely manner may prevent your case from being dismissed or rejected.

Stick to the Repayment Plan

If you file for reorganization bankruptcy, you will be required to make payments on some or all debts for three to five years. Payments will be made according to a plan that is approved by the bankruptcy court. 

Making your plan payments as required may avoid challenges from creditors or other problems that could result in your case being dismissed. If you have trouble making payments, get in touch with the case trustee as soon as possible.

`Bankruptcy is ideally a last resort for dealing with debt after all other options have been exhausted. However, when done correctly, bankruptcy may help you get a handle on your finances both today and in the long run. 

If you are thinking about filing, make sure to do so with the help of an attorney or financial adviser to make it easier to manage the process.

Factors to Consider While Filing Bankruptcy

Bankruptcy is one word that we all fear about. Debt is stressful and overwhelming experience for anyone and a pure hell that have gone through. The most hazardous is when these debts start piling up and collection begins to call in; it is like living on the edge of financial hardships. Rather than keeping your debts and overhead expenses piling and finally that you come broke, it is better to file a bankruptcy before that.

In present economic situation, filing a bankruptcy is common thing, though for those who are filing are under pressure of numerous things, questioning whether they have head towards the right step or not.

Also, they have a fear whether they will be able to get back their life on track or not. There are certain factors to consider while filing bankruptcy and instead filing it yourself it is recommended that you hire an expertise help.

The reason of hiring an attorney for filing bankruptcy is every country/state has different norms to follow and has designed the bankruptcy law similar to that. It is difficult to know and follow these laws, also with time they are changed which makes grim to know the latest update thus, employing attorney sounds good.

Below mentioned are some of the factors to consider while filing bankruptcy such as:

First Thing First, Are You Ready For This: It is an important decision that people take time in taking into consideration. Determining to file for the bankruptcy doesn’t mean one doesn’t have weighed its pros and cons. Also, it is life altering matter, if not bankruptcy, through debt negotiation has also proved to be effective in resolving debt issues.

Your Assets Might Be At Risk: Debt crisis can lead to all types of consequences; some of them make it worse than others. When you default on a secured debt, such as car loan or mortgage those assets automatically turns into the risk of liquidation. Filing for the bankruptcy can help you regain the possession of your assets or can prevent a foreclosure. This is an actual benefit that people find appealing in bankruptcy process. When comparing the traditional debt negotiation, bankruptcy places an instant hold on any seizure, garnishment orders or lawsuits. This lets you have enough time to resolve your debts without worrying about your valuable possessions.

Debts Are Overwhelming: People most of the times misunderstood about the entire filing bankruptcy procedure, they think that those who file bankruptcy are overwhelmed by their debts. However, it is not always the same scenario with missed payments and tight financial condition it is an occasional concern and doesn’t necessarily suggest that you are a candidate for filing bankruptcy. If your debts majorly comprises of student loans, domestic expenses, taxes and such like then you are less likely to file bankruptcy since these kinds of debts rarely qualify.

Have You Reviewed Your Options? Filing for the bankruptcy could be a great tool during your financial hardships, not a first choice that you at the most consider. Though the entire procedure is time consuming, and involves attention from legal avenues. Also, know that not every time you are saved from the legalities there are always good as well as bad side and depending on the case the court approves the filing if not entirely but partial. It is better that you consult an attorney and let him/her do the job.

It is necessary that you talk openly with your attorney, as he/she would be the only person that would be fighting for you and aiding your financial crisis as much as possible. Lastly, know that filing bankruptcy is not about absolutely about how bad your past financial records were, but how efficiently you will be managing your financial undertakings after it.