Showing posts with label Bankruptcy. Show all posts
Showing posts with label Bankruptcy. Show all posts

Wednesday, January 18, 2023

6 Basics of Chapter 13 Bankruptcy

Dealing with debt is never easy, which is why many people go bankrupt when they’ve exhausted all other options. The most common type of bankruptcy is Chapter 7, but for those who can’t qualify for it or don’t want to lose their assets, Chapter 13 may be a better option. 

Here are the basics of Chapter 13 bankruptcy that you need to know to decide if it’s right for your situation.

What is Chapter 13?

Chapter 13 bankruptcy is a debt repayment plan designed to help individuals reorganize their finances and become debt-free over time. It works by allowing the individual to create a three-to-five-year payment plan that will allow them to pay off their debts in full while still being able to keep their assets. 

Once the payment plan is approved by the court and creditors, the individual must make payments on time for it to remain active and successful.

Who Can Qualify For Chapter 13?

To qualify for Chapter 13 bankruptcy, you must pass a means test. This test looks at your current income versus your expenses and determines whether or not you have enough money left over each month after paying your bills to pay off all of your debts within three or five years. 

You may only qualify for bankruptcy protection if you have enough disposable income from month-to-month.

In addition, individuals who have filed for Chapter 7 bankruptcy within the past six years can only file for this type of protection again after that period has passed. To know more about the qualifications, consult a qualified bankruptcy attorney such as Ricardo B. Casas.

What Are The Benefits Of Filing For Chapter 13?

The main benefit of filing for this type of protection is that it allows you time—usually up to 60 months—to pay off all of your debts without having creditors coming after you or taking any action against you during that period. 

In addition, filing for this type of protection can stop any foreclosure proceedings against your home and reduce the amount of interest owed on certain types of loans, such as student loans and car loans. 

Finally, filing under this chapter also stops collection calls from creditors since they cannot contact an individual while they are under court protection.

Filing under Chapter 13 can be a great way to get out from under crushing debt while keeping your assets intact and avoiding aggressive collection tactics from creditors. 

If you think this might be an option worth exploring, talk with an experienced attorney about how best to file for this type of protection today! 

Understanding the basics outlined here will help you make an informed decision about whether or not filing for Chapter 13 Bankruptcy is right for your situation.

Tuesday, November 1, 2022

Drowning in Debt? Deciding if Bankruptcy is Right for You

When you're drowning in debt, it can be difficult to see any way out. If you're struggling to keep up with your payments and feel like there's no end in sight, you may be considering bankruptcy as an option.

But is bankruptcy the right choice for you? Here are some things to consider when deciding if bankruptcy is right for you.

How Much Money Do You Owe?

Not all types of debt are eligible for discharge under bankruptcy laws. If the majority or all of your debt consists of student loans or tax obligations, then it's probably not worth pursuing bankruptcy as an option to get out of these debts. 

However, if most or all of your debts are credit cards or medical bills, then you may be able to get rid of them by filing for bankruptcy.

Have You Tried Other Options?

Bankruptcy should only be used as a last resort after trying other options, such as negotiating with creditors and seeking help from non-profit credit counseling agencies. 

Before deciding whether or not to pursue bankruptcy, take the time to explore other alternatives that could help reduce your debt load and put you back on track financially. 

Consider engaging the services of a financial advisor, like those at McManus & Associates, to help you decide if bankruptcy is the best option for your situation. 

They can help you understand the process and what to expect and offer alternatives that may be more appropriate for your unique circumstances.

Will It Affect Future Employment Opportunities?

Filing for bankruptcy has long-term consequences that extend well beyond the actual process itself – including potentially affecting future employment opportunities and making it more difficult to qualify for certain types of loans down the road. 

Before deciding whether or not to file for bankruptcy, think carefully about how this decision might impact your prospects and livelihoods – both now and down the road.

Pros and Cons of Bankruptcy

Bankruptcy can be a helpful tool for getting out of debt and making a fresh start. It can give you a much-needed break from creditors and collection agencies. It can also help eliminate some types of debt, like credit card debt. 

On the downside, bankruptcy will stay on your credit report for years, making it difficult to get loans or lines of credit in the future. It can also be expensive to file for bankruptcy, and the process can be complicated.


Bankruptcy can be difficult, but it is important to remember that it is a legal process designed to help those struggling with debt. If you are considering bankruptcy, speak with a qualified attorney or financial advisor to help you understand the potential risks and benefits. 

By doing so, you can make an informed decision about whether or not bankruptcy is right for you.

Thursday, August 4, 2022

Ways a Bankruptcy Lawyer Can Help When Declaring Bankruptcy

If you've accumulated a significant amount of debt you can't repay, it may be time to consider bankruptcy to find relief and move on from your financial difficulties.

Although filing for bankruptcy can provide you with a solution to your financial situation, it can be easy to make mistakes during the process without the help of a professional. There are a few ways a bankruptcy lawyer can help walk you through the process.

Obtain Legal Advice

A bankruptcy lawyer can give you legal advice regarding the different legal issues that are related to the debt you've accumulated. They will assist you in filing a bankruptcy petition with the court and can help you become more informed about which debts are eligible to be erased.

They Understand the Legal Process

Like any lawyer specializing in a specific aspect of the law, bankruptcy lawyers understand the legal process of navigating financial law and can help you meet important deadlines and file the paperwork properly. 

They'll help you avoid specific mistakes that can lead to delays and can help you achieve the best possible outcome. They'll help you to know what to expect and will help you acquire proper knowledge to expedite the process.

Work with Creditors

A bankruptcy lawyer can work directly with creditors on your behalf, which can alleviate your stress and help you to avoid harassment from creditors. Lawyers understand how to interact with creditors and will prevent them from contacting you again in the future. 

You also don't have to worry about the legal professional committing fraud against you and will ensure that all of your assets are accounted for after filing bankruptcy.

Higher Odds of Success

When you hire a bankruptcy lawyer, someone like Knollmeyer Law Office, PA, there's a higher level of success due to their level of experience and expertise. 

They know the right tricks and techniques that can increase your chances of having the court be swayed in your favor. You'll be informed about the information that needs to be disclosed to ensure you provide everything the court requests and don't make mistakes that can affect the outcome. It'll be easier to feel more in control and avoid confusion as the legal profession represents you.

Hiring a bankruptcy lawyer can reduce the stress that comes with having financial difficulties and can allow you to have more debts erased. This legal professional will provide you with the support you need and can handle all of the details of your case to ensure you have a smooth and successful process.

Sunday, February 13, 2022

How to Get Out of Medical Debt

Medical debt is a major financial burden that millions of people are currently struggling with. While you might feel overwhelmed by your medical bills, there are a few steps that you can take to reduce your debt, lower your payments, or even have your debt wiped out entirely.

Collect and Review Paperwork

It is an unfortunate fact that a relatively large percentage of medical bills have errors, and some studies have shown that as many as 75 percent of patients aren’t being billed correctly. 

That is just one of the many reasons why you should always review all of the paperwork that you receive from the hospital. You must also ask the hospital for an itemized list of all the charges so that you can dispute any errors.

Contact the Hospital

The next step in the process is contacting the hospital directly to discuss your bills. As long as your bills haven’t been sent to collections, you might be able to negotiate new terms with the hospital’s billing department. 

Most hospitals want to retain the debt so that they profit from it, and they could help you come up with a more affordable payment plan that doesn’t destroy your finances.

Apply for a Medical Credit Card

Acquiring a medical credit card is another option that you should consider if you can’t negotiate with the hospital. Medical credit cards tend to have very low interest rates and much lower requirements for applying. 

Some medical credit cards even offer zero percent APR for upwards of two years, and that will give you plenty of time to focus on your finances and rebuild your credit.

Consider Bankruptcy

While these other options can be very useful for some patients, there may come a point when it is time to consider bankruptcy. Filing for bankruptcy will allow you to restructure your debt or even wipe it out entirely, and that process should be off your record in a matter of years. 

To read more about your bankruptcy options, you should head to a reputable legal site that will allow you to learn about the pros and cons of each chapter of bankruptcy.

Ongoing debt can become a life-altering burden, and that is why many people will ignore it for years as it spirals out of control. If you have been struggling with medical debt, then it is time to come up with a long-term plan for getting out of debt and rebuilding your finances.

Friday, January 28, 2022

The Advantages to Hiring a Bankruptcy Lawyer

Too much debt can be a serious problem. You may end up with so much debt that ever paying it off seems impossible. You may fear you’ll never be able to get your financial house in order again, and the consequences will prevent any necessary major purchases ever again. 

If this is the case for you, you may be tempted to file for bankruptcy. However, it’s actually a good idea to do so with the assistance of a bankruptcy attorney, as doing so can have certain advantages you may have otherwise been unaware of.

You’ll Be Able to Get the Best Chapter of Bankruptcy for You

For individuals, bankruptcy usually takes either of two forms. This includes Chapter 7 bankruptcy, which involves a traditional liquidation of assets. 

It can also be Chapter 13 bankruptcy, which involves the restructuring of a person’s debts. A seasoned bankruptcy attorney should be able to obtain the form of bankruptcy that is most likely to work best for you.

A Lawyer Can Deal With Your Creditors

One of the worst parts of being in debt can be having to deal with creditors. When creditors want their money, their harassment of debtors can be relentless. 

At certain points, you may feel genuinely intimidated by their harsh tactics. One solution is to go to website of a seasoned bankruptcy attorney and contact them regarding your case. The lawyer can be the one who deals with the creditors so you don’t have to.

You Will Increase Your Odds of Success

Many people are actually rejected by the court and not allowed to go through the bankruptcy process. In other cases, they may end up going through a form of bankruptcy they didn’t want to that can result in losing assets or still having to pay creditors. 

Overall, you are not a lawyer. If you want to increase your chances of success, you need to hire a bankruptcy attorney.

Bankruptcy Is Very Complicated and High Stakes

Bankruptcy is one of the most regulated portions of the law. There is a lot of legal code to cover, and much of this can be confusing for a layperson. If you make mistakes in regards to bankruptcy, you may even end up being sent to jail for fraud. 

Hiring a bankruptcy lawyer, however, can help ensure that your actions conform to the law and you obtain the best outcome possible.

Overall, you should never decide to go through the bankruptcy process on your own. Instead, it’s better to take advantage of the skills and knowledge of a seasoned bankruptcy attorney in order to help you find a desirable way out of your predicament. 

At the very least, you’ll have a much better advantage of dealing with creditors, the bank, and allowing your finances to recover overall if you have someone on your side who knows their way around bankruptcy and all it entails.

Tuesday, September 21, 2021

Ways to Finally Feel Relief From Being in Debt

Many people find themselves in a situation where they have racked up a lot of debt and just aren't sure what to do about it. Having a lot of debt can be scary, and you may feel like you are drowning in bills all of the time. 

Fortunately, there may be some things that you can do to alleviate some of the financial stress that you are feeling. 

Here are some ways to finally feel relief from being in debt.

Make Payment Arrangements With the Creditors

If your payments are more than you can afford, call up your creditors to see if you can make some kind of payment arrangements with them that you can afford. 

There's a good chance that they will work with you as they would rather you pay them something every month instead of nothing. It may take you longer to pay them off, but it will give you a bit of relief.

Talk to a Bankruptcy Attorney

It's not that uncommon for some individuals to be so overwhelmed by debt that the only way they can get some relief is by filing for bankruptcy. If you feel like you are too far in over your head to ever be able to pay everything off, you may want to talk to a bankruptcy attorney like Brian R. Cahn & Associates, LLC

They will talk to you about your finances and help you determine whether or not bankruptcy may be right for you.

Create a Budget to Know Where All of Your Money Is Going

Many people find themselves having a difficult time paying off debt because they just don't know where their money is going every single month. If you don't have a budget, now is the time to create one. 

Write down your monthly expenses as well as how much money you bring in. You can use this information to determine how much money you have leftover to pay off your debt.

Find Some Ways to Bring in Extra Money

If you want to pay off your debt as quickly as possible, you should find some ways to bring in extra money. Ask your job if you can work overtime, or look into side gigs that you can do around your full-time job.

If you are in debt and feeling stressed about it, there are some ways that you can finally feel relief. By utilizing all of the tips mentioned above, you can tackle your debt and not feel like you are in a hopeless situation.

Tuesday, May 25, 2021

Is Your Debt Getting the Best of You? How to Decide Which Financial Option Suits You

Sometimes the mortgages and credit card debts can seem insurmountable. No matter how many months you pay, you never seem to manage the large amounts of debt that have accumulated over time.

Debt can be particularly overwhelming if you don’t have a plan for paying it off. It can be discouraging when you owe so much that you cannot even determine when you will get it all paid off. 

And no matter how much money you earn, you may feel like sometimes all you are able to do is pay your monthly bills.

The good news is that there are plenty of options for getting out of debt, and they are solutions that anyone can make use of. If you follow a few simple financial tips, you can pay off your debt and be debt-free in a year or two depending on the amount you owe.

Organize Your Bills

Before you can pay off what you owe, you have to determine your total debt. Analyze your bank statements and your credit card statements from the past 12 months. 

Take note of all the recurring loan bills and other fixed expenses you have. Be sure to include interest rates, total balances, and any additional small payment required on top of the total debt.

Next, you want to check your credit report to see your current loans, lines of credit, and any loans you might have in default. You can check your credit report annually online for free. Be sure to analyze your credit from all three credit bureaus, as some lenders don't report to all three of them.

Once you know what your total is, you're ready to start paying your bills and be on the road to living a debt-free life. All you need to do is follow these simple strategies.

Pay More Than Your Minimum Payment

Analyze your income. See what you can do to earn additional income to pay off your debt, then budget your expenses. Finally, decide on how much extra money you can put towards your debt. Paying more than the minimum amount on credit card debt will save you money.

For example, if you have a $10,000 balance on your credit cards, there's a 17% APR and let's say you have a minimum payment of $350. 

If you only make that minimum payment, it will take you four years to pay off the balance, and you'll end up spending about $4,000 on the interest rate. On the other hand, if you paid $600 a month, you could repay that debt in less than two years and lower your interest rate.

Prioritize Your Smaller Debts

Another option is to make the minimum payment on all your credit cards, except for the smallest one. Then pay as much as you can towards that one. 

This method allows you to eliminate credit card debt quickly. Once you are finished with one, you can quickly pay down on the next one.

Refinance to Lower Interest Rates

Consider refinancing your debt and getting a lower interest rate. This process can save you hundreds of dollars in interest and will help repay your debt off faster

By consolidating several loans into one, you usually end up with one smaller payment. You can refinance auto loans, mortgages, and even personal loans.

Save Money by With a Settlement

Another option is to call your creditors and negotiate a settlement. Often you can get a debt settlement deal for a lot less than what your monthly payment is. Again, you can do this yourself or contract that third party to conduct the debt settlement services for you.

Consider Filing for Bankruptcy

If none of these options are available to you, consider contacting a bankruptcy attorney. While bankruptcy is not for everyone, it can get you out of large amounts of accumulated debt. Sometimes starting over can be your best option if your debts have become too significant for you to handle by yourself. 

Because bankruptcy comes in many forms, it is usually best to talk to an attorney to see what options are available to you.

There are many different options to get out of debt. However, it is important to remember that your debt should never be ignored since it will never go away by itself. You need to be proactive and use proper judgment to find options to relieve your debt.

Saturday, April 3, 2021

Facing Bankruptcy? Here Are 4 Things You Have to Know

You may know a few, basic facts about bankruptcy, but there are numerous myths that everyone tends to believe. Know about the rules and risks of filing for Chapter 7 or 13 bankruptcy along with the exceptions. 

Here are four of the most important facts to know.

Your Credit Is Safe

A bankruptcy remains on your credit report for 10 years and then can be discharged. After this period ends, you have the ability to obtain a new loan, home, car, or other large investment. 

This means that lenders are willing to work with you again. With some patience and proper planning, you can obtain new credit sooner than you think.

You Don't Have to Give Up Everything

Filing for bankruptcy does not mean having to give up your money or assets. You still keep hold of your property, vehicles, and personal belongings. 

If you file for Chapter 7 bankruptcy, keep all of your possessions and claim exemptions that you need for your daily essentials. The reality is that many people's belongings are old or damaged and have little to no value. 

Creditors are not likely to go after your old possessions; however, they may still go after your vehicles and other expensive valuables.

Some Debts Are Not Forgiven

Filing for Chapter 7 or 13 bankruptcy relieves some but not all debts. The debts that you cannot have discharged must be paid for yourself, such as taxes, child support, and student loans

These rules are set in place to force people to take greater responsibility for their actions. On the other hand, you can discharge credit card bills, medical bills, and personal loans. Contact a bankruptcy lawyer to learn more about the debts and discharges in your state.

Bankruptcy Is Not a Bad Idea

When people think of bankruptcy, they tend to only think of the negative consequences that come later. For many individuals and business owners, filing for bankruptcy is one of the best financial decisions they'll ever make. 

It helps them to start over financially and reduce their monthly repayments. This option is not recommended for every debtor, so it's important to review your decision with a bankruptcy attorney.

Every year, debtors file for bankruptcy to relieve their debts without knowing what they're getting into. Some people don't file at all, worried that their credit and reputation will be ruined forever. 

Some borrowers think that the process is easy and all of their debts will be forgiven. It's important to separate fact from fiction as you consider the debt relief option of bankruptcy.

Saturday, March 13, 2021

Why You Need Legal Counsel When Filing for Bankruptcy

You’ve become tired of the constant calls from your creditors. You are receiving threatening letters daily from the companies you owe money to. Your debt situation is out of control. You have decided that bankruptcy is your best option. 

Now, you may be tempted to file bankruptcy on your own. You may believe you could save the money you would pay an attorney. You could also be making a huge mistake that could cost you far more than attorney fees in the future.

Valuable Legal Advice

Unless you are an experienced bankruptcy attorney, the process will seem complicated. Legal professionals are able to provide you with important advice and answer any questions you have about bankruptcy. 

They know how to help when you feel lost and confused. These attorneys can help you make the best decision when it comes to the method of bankruptcy you should file and more.

End Harassment

A bankruptcy lawyer, like those at McCool & McCool, knows all the ins and outs of the business. A competent lawyer will know how to have debt collectors stop calling your house and business. 

If creditors continue to call once you have filed for bankruptcy, these lawyers will tell your creditors to contact them directly. They will handle these issues so you no longer have this problem.

Professional Relationships

An attorney will have developed important relationships with clerks, judges as well as other attorneys. They may also be familiar with your creditors. 

Their significant knowledge of the court system and those who work in it will be a huge benefit for your case. These professional connections can help them know the stage of your bankruptcy and keep your case moving through the legal system.

Residual Issues

One or more of your creditors could disregard your debt discharge. They may continue to try and collect on your discharged debt. It is also possible they could continue to report late payments on your credit report. 

An attorney will know how to handle this situation. It may require them to petition the court for injunctive relief. This will stop the creditor’s behavior in this situation.


Once you have successfully filed for bankruptcy, you will then need to work on repairing your credit. This is when an attorney can provide you with important suggestions when it comes to rebuilding your credit rating. 

They will know how this can be done responsibly. The goal will be to set you up for financial success. They will help you be in the best financial position going forward.

You should realize bankruptcy is something that can happen to anyone. The yearly bankruptcy filings in the calendar year 2020 totaled over 500,000. 

This is a time when an innocent mistake can cause serious problems in the future. A lawyer will know how to guide you through the entire process. Your bankruptcy will be done correctly and be a benefit to you.

Wednesday, January 6, 2021

How to Recover After Filing for Bankruptcy

The decision to file for bankruptcy isn’t an easy one. In many situations, it’s the best option, but that doesn’t mean it will be easy. After you file, you’ll need to work to fix your credit and bring your financial situation back into a healthy balance.

Get Comfortable With Your Credit Report

Monitoring your credit will be important following a declaration of bankruptcy. You’ll want to make sure the bankruptcy effectively removed all debt. Otherwise, it could continue to affect your credit score. Look over the report at least once a month.

Start Building Credit

To develop a healthy relationship with your finances, you’ll need to begin responsibly using credit. A recent bankruptcy will limit your options, but you should be able to get a secured credit card. 

This type of card allows you to use your own money as collateral, removing any risk on the part of the lender. The collateral is usually a few hundred dollars. Having it will allow you to practice using a reasonable amount of credit and then paying off the balance each month. 

Always keep the balance low as this is part of what will determine your new credit score. Start with one line of credit for now, and slowly build over time. You don’t want to add too many new accounts at once. It lowers your score.

Consider a Bankruptcy Attorney

Bankruptcy law can be confusing. A good bankruptcy attorney can guide you through the process and can help guide you through the next steps. Along with helping you decide what type of bankruptcy filing is best, the attorney will also handle calls to creditors and ensure you file all paperwork correctly.

Practice Good Behaviors

Bankruptcy provides a fresh start, but it’ll be up to you to make use of it. If you continue to make the same financial mistakes, you’ll end up back in a bad situation or possibly even be worse off than before. 

Be sure to pay all bills on time, follow a budget, and live within or even below your means. The more money you can put in savings, the less likely you are to go further into debt in the event of an emergency.

Complete recovery from bankruptcy isn’t easy. At times, it can feel impossible. However, with hard work, dedication, and a lot of patience, you can learn a new financial skillset and move forward into a much better future.

Saturday, March 28, 2020

How Do You Know If You Need A Bankruptcy Lawyer?

There is no need to drown in debts, primarily unsecured debts, or debts that aren't related to utility bills while a bankruptcy lawyer can help you out. You may find yourself in such a situation, especially after a bad loss, investment fraud, divorce, or even an accident that leaves you maimed and physically disabled permanently. 

While your other insignificant investments and Insurance compensation may be able to sustain you in the meantime, it isn't advisable to always take chances and gamble, lest someone sues you, and sends debt collectors into your last remaining property.

So, how do you know that your business is never going to wake up from insolvency? How do you know that it is never possible to service debts as planned before? Well, the following instances should prompt you to look for a Montgomery AL bankruptcy lawyer immediately:

Unable to pay bills

If your employer was recently offering a house or car as part of prerequisite packages, then financing the same kind of lifestyle when jobless can be challenging. Remember, you can still afford to pay some utility bills such as telephone bills, but you are straining very much, unlike before when you were liquid. 

Anything close to straining forecasts the coming hardships which you must prepare to handle. Also, if you start paying the utility bills from your savings, then that amounts to straining, in which case you need a bankruptcy lawyer before things go further south.

Bounced checks

It is understandable for a check to bounce, especially when there are technical hitches from the remitting or receiving banks. However, how about when multiple checks bounce at a go? For instance, if a check to your supplier bounces, the ones to your employees bounce, and the one to your child's school also bounces, then there is a problem from the remitting account, which may be zero account balance. 

You don't have to wait and receive complaints from everyone else. Instead, look for a bankruptcy lawyer to handle the situation from there.

Limited cash flow

The only person who can tell if there is inadequate cash flow in your life is you! Furthermore, if the cash flow has moved from affecting your current accounts and is now eating up the reserves, then you need to file for bankruptcy. That will allow you to strategize and bounce back to financial independence like before.

Court representation

Lastly, it may all end up in you needing court representation because of one reason or another, but still, due to financial constraints, you cannot afford an attorney. The other reason for court representation is when a creditor moves to court to secure an order to auction some of your stuff. 

When it culminates to that extent, the noble thing to do is calling a bankruptcy lawyer, who will know how to handle things from there. However, you must also note that before being declared as bankrupt by a court of law, you must fulfill the prerequisite conditions as stipulated by related laws.

You'll never know when things will go wrong in your life, but at least you will see it coming. Brace for it, take it positively and file for that bankruptcy notice. Once you've hit rock bottom of life, it is always easy to rejuvenate from a fresh financial start, free of debt obligations.

Wednesday, August 28, 2019

Hit Rock Bottom? How to Know When to File for Bankruptcy

If you have hit rock bottom and can’t seem to find a solution to your mounting debt, bankruptcy may be your best option. Many factors should be taken into consideration to determine if filing for bankruptcy is the right choice and whether or not you qualify. Here are some reasons why bankruptcy may be right for you.

Protection of Assets

Some of your assets could get seized if you aren’t able to repay the money that you owe, and filing for bankruptcy can resolve this problem. If you’re able to declare bankruptcy, you’ll likely be absolved of most or all of your debt and will be able to keep at least some of your property. Bankruptcy can be an especially good option if you’re trying to protect assets such as your home, car and retirement fund.

Using Loans to Pay Bills

Taking out loans to pay bills will usually only result in acquiring more debt that will be even more difficult to pay off in the future. In addition to repaying the amount of each loan, interest fees and any late charges that might incur from failing to make payments on time can make money matters worse. 

Banks, credit card companies and other financial institutions that you borrowed money from to try to pay back debts could end up turning you into collections and putting you in more financial jeopardy. If taking out more loans seems like the only way to pay off existing bills, filing for bankruptcy should be considered.

Sued by Debt Collectors

If your debt has been turned over to collection agencies and you still can’t pay back the money, lawsuits could be brought against you. Many law firm services include bankruptcy consultations that can protect you from lawsuits and help you file for bankruptcy properly so that you can put an end to harassment from collectors.

Qualify for Chapter 13 Bankruptcy

Chapter 13 bankruptcy can be a great option if you still have a regular income and can repay all or part of the debt gradually through payments. In most cases, the repayment plan will last a duration of three to five years, which gives you more time to come up with the money without going deeper into financial ruin. Even if you’re self-employed or run an unincorporated business, you’ll still likely be eligible to file for bankruptcy under this chapter.

Bankruptcy is your legal right if you’re able to meet certain criteria. Even though this option isn’t desirable, filing for bankruptcy could be what you need to resolve your debt and get a fresh financial start.

Sunday, June 2, 2019

4 First Steps When You Need to File for Bankruptcy

Deciding to file bankruptcy is a difficult and complicated decision. While taking this step gives you relief from your mounting debts and the persistent calls from your creditors, it also comes with a price. 

Depending on the type of bankruptcy you file, you could be looking at damaged credit for the next seven to 10 years. As such, it’s important to approach your bankruptcy with your eyes open. If you stick to the following four tips, you’ll stand a better chance of getting rid of your debt burden through bankruptcy.

Identify Your Creditors

In order to get as much relief from bankruptcy as possible, you need to identify all of your creditors. These creditors need to go on your creditors list that you’ll submit to the courts. 

If any of your creditors don’t make it onto the list, then these businesses can still come after you even if you’ve filed bankruptcy. Putting all of your creditors on your bankruptcy papers allows you to get relief for all of your debts, with some exceptions like student loans.

Organize Your Assets

You will need to list your debts in two columns, one for your secured debts and one for your unsecured debts. Unsecured debts are debts like credit card and personal loan debts. Secured debts (collateral debts) are items like cars, personal possessions, and other physical objects. 

According to Nerd Wallet, in order to complete your bankruptcy, you may have to give collateral like cars or other items back to the business you bought it from. You may also have to sell off some of your physical collateral items; the money you earn from the sale would go to the creditors you owe money to. 

You’ll need to indicate in your bankruptcy paperwork which types of debts you have. Be sure to make a complete listing of both to ensure that no debts are missed.

Hire an Attorney

Choosing the right type of law firm services ensures that your bankruptcy will go as smoothly as possible. A knowledgeable bankruptcy attorney can look over all of your paperwork and offer you suggestions for how to deal with your assets, your debts, and other bankruptcy-related matters.

Choose the Right Kind of Bankruptcy

Two kinds of bankruptcy exist for individuals, Chapter 7 and Chapter 13. People who need complete debt relief - that is to say, the eradication of all of their debts - choose Chapter 7. It stays on your credit for 10 years.

Chapter 13 is a debt reorganization plan. It’ll be on your credit for seven years. People who choose this type of debt do so in order to make their payments more manageable. Chapter 13 will get rid of some of the overall debt. More importantly, this type of bankruptcy allows debtors to take control of their debt while still giving some money to their creditors.

Filing for bankruptcy can bring you some immediate financial relief. However, it also negatively impacts your credit. By following the previous four tips, you ensure yourself the best chance of having the best outcome from your bankruptcy. While this decision is difficult and comes at a great cost, it can also put you back on the road to financial recovery if you approach it right.

Wednesday, April 3, 2019

3 Financial Situations Worth Finding Outside Help For

With financial issues related to high debt balances and a generally tight budget being common, many people struggle to manage their funds on a daily basis. However, situations inevitably can crop up from time to time that add onto everyday financial stress. 

Muddling through these issues on your own is one option, but you may enjoy a superior outcome if you seek expert support and guidance when critical situations develop. These are some of the more significant situations that may dictate the need for extra help.


If your debt problem has grown so severe that you are seriously considering filing for bankruptcy, reaching out to a bankruptcy attorney as well as a financial consultant are excellent steps to take. By consulting with a bankruptcy attorney, you may learn about your legal rights, discover how to protect yourself from creditors and determine the actual pros and cons associated with bankruptcy. 

A personal financial advisor may help you to determine if other options are available. For example, a debt consolidation loan may work well for some people and may eliminate the need for bankruptcy.


A divorce is a legal matter that impacts numerous aspects of your life. One of the more significant areas that it affects is your personal financial situation. Through a divorce ruling, the ownership of your home, liquid assets, valuable personal property, retirement plan and other assets is determined. 

You may also be awarded child support or alimony, or you may be required to make these payments to your ex. Because divorce weighs heavily on your financial future, seeking legal support throughout this process is essential.

A Civil Lawsuit

Regardless of whether you are the plaintiff or the defendant in a civil lawsuit, your finances can be impacted by the ruling. Consider that you may be suing a neighbor over property damage, and the compensation from a lawsuit may be essential to pay for repair costs that you have incurred. 

On the other hand, you may be the defendant, and you may need lawsuit funding to manage expenses that you are required to pay. Hiring a seasoned personal injury lawyer who specializes in a related niche may help you to achieve a superior outcome. 

It is also important to know about potential legal costs that vary by location. It’s likely that lawsuit funding in Texas will be different compared to New York, for example.

For many people, financial situations are personal matters. You understandably may prefer to manage your finances independently when possible. However, in these critical situations, reaching out for professional assistance may be in your best interest.

Saturday, June 9, 2018

Staying out of the Red: How to Keep Your Business out of Bankruptcy

Just like a person, a business must find a way to pay its bills and keep a sufficient amount of money in the bank. Furthermore, companies also have their own credit scores that go up and down based on its ability to manage money. Good money management can keep a business thriving for years while also keeping it far away from a bankruptcy court.

Don’t Borrow Funds Unnecessarily  

Prior to borrowing money from a bank, friend or other ABL lender, it is important to know how that money will be used. It is also important to know how that money will be repaid and when. An accountant or other financial adviser can help a business owner determine if a loan is an appropriate way to help the company grow.

Don’t Overspend

One of the many problems that most businesses have, especially if they are still in their startup phase is they tend to overspend. The problem with overspending should be obvious, but by doing so, you may not be able to pay for the necessities for your business to survive. 

You have to be able to pay the bills and pay your employees properly. But overspending can be very easy to do. There are going to be times where you have unexpected expenses that come up. 

However, if you budget your money properly, not only should you be able to take care of those unexpected problems, you should be able to take care of all the necessities in your business and still turn over a profit. It is tricky, but if you are able to pull this off in your business, you will be successful in the long run.

Keep Labor Costs in Check

A company’s employees are among its most important asset. While you can attract quality talent by offering higher salaries and other perks, it could have negative consequences for your bottom line. 

Make sure that you pay what your company can afford to spend on human resources even if that means paying your people less than the competition. In some cases, you can make up for a lower salary with more robust health benefits or extra vacation throughout the year.

Don’t Expand Too Fast

Expanding too fast can cause you to overspend money in your business. When you try to expand, you have to be able to anticipate all of the unexpected expenses that may arise. Although opening a second or third location could mean additional revenue, it will also mean additional costs. 

It could also mean that you need to hire managers and other personnel to properly oversee these locations. By growing at a controlled pace, you can increase revenues in a consistent manner and ensure that each location is making enough money to justify its existence.

Make Use of Credit Monitoring Tools

Using tools like CreditRiskMonitor can make it easier for a company to determine where it stands compared to the competition. This may help a business take action to cut costs, pay down its debt faster or otherwise become a leaner organization. 

By taking these steps, it could be easier to secure an investment or otherwise increase its revenue and gross profit.

As a business owner, you want to make sure that your company is as financially healthy as possible. This makes it more likely that the business will be around for the long-term, which may instill greater confidence in employees, suppliers and investors. 

Ultimately, it makes it easier to grow your business from a small business into a regional or national power.

Friday, May 25, 2018

4 Financial Steps to Protect Yourself from Bankruptcy

Dealing with overwhelming debt can be a serious burden. Dealing with bankruptcy, however, can often be just as frustrating. Bankruptcy can do a number on your credit, after all. If you want to safeguard yourself from all of the stresses of bankruptcy, these financial tips can be highly effective and useful.

Work on a Budget

Assess the amount of money you use on a monthly basis. Set up a budget that can keep you accountable and focused. Tell yourself that you won’t go over your designated budget no matter what, too. 

If you want to take charge of your monthly spending patterns, maintaining a budget can make a strong foundation. You can handle your spending by using cash for anything you get. You can do so by throwing all of your credit cards away as well.

Say Goodbye to Frivolous Purchases

Viewing your purchases in a totally new light can help you steer clear of bankruptcy. Refrain from buying anything you absolutely do not need. If it’s not rent money or food, then there’s a strong chance that you can cut it out. 

Say goodbye to eating out at restaurants. Say goodbye to cigarettes, costly cable television packages, movie theater trips, spa pampering days and more as well. 

You can even save money by cancelling your fitness center membership. Jogging at the park can be just as effective.

Reach out to a Bankruptcy Lawyer

Attorneys who have bankruptcy expertise can supply you with comprehensive insight that can potentially help you keep filing at bay. 

If you want advice from a legal professional who knows all of the pitfalls that get people on track to bankruptcy, a lawyer consultation can be a superb idea. Book a consultation with a bankruptcy lawyer who possesses a blue-chip track record.

Put Your Property up for Sale

Putting property up for sale can often help people who want to stay far away from bankruptcy. If you have a vacation home that no one occupies, you can think about selling it. 

If you have a vehicle that you rarely use, you can consider putting it up for sale, too. Contemplate any and all items you may have with high value. Selling rare antiques may help you dodge bankruptcy filing.

The thought of bankruptcy shouldn’t make you lose your cool. If you’re calm, you may be able to think your way out of a scary debt situation. The answer is to think things through rationally.

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