Navigating the Complexities of Bankruptcy: A Comprehensive Guide

Bankruptcy can be a scary and overwhelming process for anyone to navigate. The legal jargon, the paperwork, and the possible stigma can all make the decision to file for bankruptcy seem daunting. 

But remember that bankruptcy is a legal process designed to help individuals and businesses overcome insurmountable debt and start fresh. 

In this comprehensive guide, we will break down the complexities of bankruptcy and help you understand the process from start to finish.

Different Types of Bankruptcy

The first step in the bankruptcy process is determining which type of bankruptcy is right for your situation. 

There are two main types of bankruptcy for individuals: Chapter 7 and Chapter 13. 

Chapter 7 bankruptcy involves liquidating assets to pay off debts, while Chapter 13 bankruptcy involves creating a repayment plan to pay off debts over a period of time.

Deciding which type of bankruptcy to declare can be a difficult decision. Be sure to carefully consider your financial situation, the types of debt you have, and any assets or property that may be at risk. 

If you have mostly unsecured debt, such as credit card debt or medical bills, Chapter 7 bankruptcy may be a better option since it involves liquidating assets. 

However, if you have a steady income and want to keep your assets, Chapter 13 bankruptcy may be the better choice as it involves creating a repayment plan. 

Consulting with a bankruptcy attorney can help you make an informed decision based on your specific circumstances.

Getting Things in Order

Once you have decided on the type of bankruptcy that is right for you, the next step is to file a petition with the bankruptcy court. This involves submitting detailed financial information, including a list of assets, debts, income, and expenses. 

The court will then appoint a trustee to oversee your case and schedule a meeting of creditors, where you will have to answer questions under oath about your financial situation. 

Be honest and thorough in your disclosures to the court to ensure a smooth bankruptcy process.

One of the biggest concerns for individuals considering bankruptcy is the potential loss of assets or property. 

However, there are certain things that you do not need to worry about when filing for bankruptcy. These include exempt assets such as household goods, clothing, and retirement accounts.

Additionally, some debts may not be dischargeable in bankruptcy, such as student loans and child support payments. Consulting with a bankruptcy attorney can help you understand what assets and debts are exempt in your specific case, giving you peace of mind during the bankruptcy process. 

Don't let your fears about losing everything prevent you from seeking the debt relief that bankruptcy can provide.

Working With Creditors and Lawyers

During the bankruptcy process, a stay is put in place that halts all collection actions by creditors, including foreclosures, repossessions, wage garnishments, and lawsuits. 

This gives you some breathing room to work with your bankruptcy trustee or chapter 7 attorney and creditors to come up with a repayment plan that is feasible for you. 

In the case of Chapter 13 bankruptcy, you will need to make monthly payments to the trustee, who will then distribute the funds to your creditors according to the terms of the repayment plan.

It is completely normal to feel overwhelmed and anxious during the bankruptcy process. However, try to remain calm and focused in order to make informed decisions. 

One way to do this is by seeking support from friends and family who can provide emotional support and help you stay positive. It may also be helpful to practice calming techniques such as deep breathing or mindfulness exercises. 

Remember that bankruptcy is a process, and with the right resources and guidance, you can successfully navigate it and come out on the other side with a fresh start.

Other Things to Consider

Aside from the legal aspects of bankruptcy, there are also emotional and practical considerations to keep in mind. Bankruptcy can be a difficult decision to make and may come with feelings of shame or failure. 

Remember that bankruptcy is not a personal reflection on you as an individual but rather a solution to help you get out of overwhelming debt. Carefully consider the potential long-term effects of bankruptcy on your credit and future financial decisions. 

Working with a reputable bankruptcy attorney can help you navigate these factors and make informed decisions throughout the process.

Don't Give Up

No matter what happens, don't forget that bankruptcy should not be seen as a failure or the end of the road. It is a legal process designed to provide individuals and businesses with a fresh start and the opportunity to rebuild their financial lives. 

While it may seem daunting at first, remember that you are not alone in this journey. With determination, support, and guidance from professionals, you can emerge from bankruptcy and move towards a more stable financial future. 

Don't give up, keep pushing forward and know that there is light at the end of the tunnel.

Final Thoughts

Navigating the complexities of bankruptcy can be overwhelming, but with the right guidance and information, you can successfully overcome your financial difficulties and start fresh. 

By understanding the different types of bankruptcy, filing requirements, and the role of the bankruptcy court and trustee, you can make informed decisions that will help you achieve a debt-free future. 

Remember, bankruptcy is not the end of the road but rather a new beginning. 

With patience, diligence, and the support of a qualified bankruptcy attorney, you can navigate the complexities of bankruptcy and emerge on the other side with a clean slate.

Navigating Chapter 13 Bankruptcy: Why You Need an Attorney

Navigating the complexities of filing for Chapter 13 bankruptcy can be overwhelming and stressful. 

From understanding the eligibility requirements to creating a repayment plan that works for you, having an experienced attorney by your side is crucial. 

In this blog post, we will discuss the importance of hiring a bankruptcy attorney when filing for Chapter 13 bankruptcy and how they can help guide you through the process.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows individuals with a regular income to create a repayment plan to pay off their debts over a period of three to five years. 

This type of bankruptcy is ideal for those who have a steady income and want to keep their assets while still working toward financial stability. 

However, navigating the legal requirements and paperwork involved in filing for Chapter 13 can be overwhelming without the guidance of an attorney.

Creating a Feasible Repayment Plan

One of the key components of filing for Chapter 13 bankruptcy is creating a feasible repayment plan that satisfies both your creditors and the court. 

An experienced bankruptcy attorney will work with you to analyze your financial situation, determine your disposable income, and create a repayment plan that fits within your budget. 

They will ensure that your plan meets all legal requirements and increases your chances of approval by the court.

Protecting Your Assets

Another important reason to hire a bankruptcy attorney when filing for Chapter 13 is to protect your assets from being seized by creditors. 

An attorney will help you understand which assets are exempt from liquidation under bankruptcy laws and assist you in retaining ownership of valuable property such as your home or car. 

They will also provide guidance on how to navigate any challenges or disputes that may arise during the bankruptcy process.

Legal Expertise and Representation

Navigating the legal system can be daunting, especially when dealing with complex matters such as bankruptcy law. 

Hiring a Chapter 13 bankruptcy attorney will provide you with valuable expertise and representation throughout the process. 

They will handle communication with creditors, attend court hearings on your behalf, and ensure that all necessary paperwork is filed correctly and on time.

Peace of Mind

Above all, hiring a bankruptcy attorney when filing for Chapter 13 can provide you with peace of mind during what is likely a stressful time in your life. 

Knowing that you have a knowledgeable advocate on your side who is working tirelessly to help you achieve financial stability can alleviate some of the burden associated with navigating bankruptcy proceedings.

Final Thoughts

Navigating Chapter 13 bankruptcy can be challenging, but having an experienced attorney by your side can make all the difference in achieving a successful outcome. 

From understanding the legal requirements to creating a feasible repayment plan and protecting your assets, an attorney will provide invaluable support throughout the process. 

If you are considering filing for Chapter 13 bankruptcy, don't hesitate to reach out to a qualified attorney who can guide you through every step of the way.

The Advantages of Choosing Chapter 13 Bankruptcy

If you are struggling to manage your debts and are looking for a way to regain control of your finances, Chapter 13 bankruptcy may be the solution you need. 

Unlike Chapter 7 bankruptcy, which involves the liquidation of assets to pay off debts, Chapter 13 allows individuals to reorganize their debts and create a manageable repayment plan. 

Explore the unique advantages of choosing Chapter 13 bankruptcy and how it can help you achieve financial stability.

Lower Monthly Payments

One of the primary advantages of Chapter 13 bankruptcy is that it allows you to lower your monthly payments by consolidating your debts into a single manageable payment. 

Instead of juggling multiple creditors with varying interest rates and payment schedules, Chapter 13 enables you to create a structured repayment plan based on your income and expenses. 

This can make it easier to stay on top of your debts and avoid falling further behind.

Protection from Creditors

When you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which halts all collection actions from creditors. This means that creditors are not allowed to contact you for payment, repossess your property, or foreclose on your home while you are under bankruptcy protection. 

This provides you with much-needed relief and breathing room to focus on creating a sustainable repayment plan without the stress of constant harassment from creditors.

Debt Discharge

While Chapter 13 bankruptcy does not involve the complete discharge of debts like Chapter 7 does, it does allow for the discharge of certain debts upon completion of the repayment plan. 

This means that you can eliminate unsecured debts, such as credit card debt and medical bills, that are included in your repayment plan. 

By successfully completing your repayment plan, you can emerge from bankruptcy with a fresh start and a more manageable financial situation.

Retention of Assets

Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off debts, Chapter 13 allows you to retain ownership of your assets while still repaying your creditors. 

This can be particularly beneficial if you have valuable assets, such as a home or a car, that you want to keep. By creating a structured repayment plan, you can protect your assets and avoid the risk of losing them in bankruptcy.

Improved Credit Score

While bankruptcy can have a negative impact on your credit score in the short term, Chapter 13 bankruptcy can actually help you rebuild your credit over time. 

By successfully completing your repayment plan, you demonstrate to creditors that you are capable of managing your debts responsibly. This can help you establish a positive credit history and improve your credit score in the long run.

Final Thoughts

Choosing Chapter 13 bankruptcy can give you a unique opportunity to reorganize your debts, protect your assets, and achieve financial stability. 

By consolidating your debts into a manageable repayment plan, you can lower your monthly payments, protect yourself from creditors, and ultimately emerge from bankruptcy with a fresh start. 

If you are struggling with overwhelming debt, consider exploring the advantages of Chapter 13 bankruptcy and how it can help you regain control of your finances.

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.

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.

Conclusion

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.

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.

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.

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.

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.

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.

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.

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.

Post-Bankruptcy

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.

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.

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.