Sunday, March 19, 2017

Drowning In Debt? 3 Strategies To Make Bankruptcy A Little Less Terrifying

The new millennium did little to bolster people's ability to earn an income and pay off their bills each month. In fact, the first decade of the 2000’s was fraught with inflation, high unemployment numbers, and stagnant hiring.

Even with the economy slowly getting back on its feet, many people are still struggling with their finances. When liquidating or consolidating your debts through the federal court system is your best option to regain control over your money, you can make filing for bankruptcy less scary by using these three helpful tips.

Organize Your Bills

Your first step to approach bankruptcy in a calm and orderly fashion calls for you to organize your bills. Gather any and all documentation for bills related to:

  • medical expenses
  • credit cards
  • utility charges
  • payday loans
  • bank or car loans

As you organize and gather your bills, you should ensure that you have proof of the original creditors' addresses and contact details. Keep your bills in a folder and bring them with you when you meet with your attorney.

Decide the Chapter

The United States Court website shows that more than 900,000 people filed for bankruptcy in 2015 alone. Out of those 900,000 or more cases, many of those were total liquidations of debts. Others were consolidations.

How do you know which chapter is right for you? You can decide between a Chapter 7 and a Chapter 13 bankruptcy by deciding your own ability to pay off the bills even after they are consolidated with the court.

Can you make on-time monthly payments over the course of four to five years? Would the monthly payment hurt your budget and become another expenditure on which you could potentially default?

If you file for a consolidation Chapter 13 bankruptcy, you do not have the option of defaulting on your payments. If you miss or refuse to make payments, you could incur legal consequences that could range from a lien put on your house, car, bank account, and paycheck to jail time.

Focus on the Future

Finally, you can make bankruptcy less scary by focusing on the future. You may feel embarrassed or sad over your financial state. Consider working with professionals, like those at Demers Gagnier Inc., to help you move forward from your debts.

It is important that you look ahead rather than at your past mistakes or misfortunes. Resolving to move forward lets you deal with filing bankruptcy and helps you anticipate what the future has in store for you.

Filing for bankruptcy may be necessary to rebuild your finances. Make it less scary using these three simple tips.

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