Hopefully, you've consulted with a bankruptcy attorney (many of whom offer free one-on-one counseling sessions to first-time clients) or another financial advisor, and after explaining your situation, (s)he concurs with your decision to file and believes it's your best course of action.
When does a person recognize that filing for bankruptcy is the only way out of their financial nightmare? While everyone's situation is unique, there are a few warning signs, such as repeatedly borrowing money from one credit card to pay off another credit card and/or taking cash advances of more than $500 to cover basic living expenses, such as food and utilities. These are ominous indicators that an individual is bound for trouble.
When you stop answering your phone calls because the majority of them are from creditors harassing you about your credit card debt, this is another indication of impending catastrophe. Are they contemplating legal action? Unfortunately, there are no laws that regulate the industry of collection agencies, and some of them can be quite aggressive in their attempts to compel you to pay what you owe. Are they currently pursuing legal action against you?
Before you can effectively deal with these obnoxious creditors, you must learn how to combat them. You can utilize the numerous offline and online resources available to you in order to defeat them at their own game. Having this knowledge will undoubtedly help you sleep better at night. The next time you receive a call from a creditor who is harassing you about your credit card debt, simply inform this person that you have initiated the bankruptcy process and see no feasible means to repay your debt.
The term """"bankruptcy"""" is poisonous to a creditor because, once you receive your discharge, you can simply make copies of it and send them to all of your creditors. The bankruptcy court should also perform this task on your behalf, as part of your filing fee. Your creditors should avoid you at this point like the pestilence. Obviously, this depends on the nature of the debts owed. I refer you to an additional article I've written titled ""Are You Making The Right Choice By Filing For Bankruptcy?""
In that article, I enumerate nine types of debts you will still be responsible for after filing for bankruptcy. These particular debts will remain intact, as if you had never filed for bankruptcy in the first instance. Conversely, I identify six types of debts that a bankruptcy filing will completely eliminate in that article. You should read that article as soon as possible to determine if the type of debt you incur is one that can be discharged. If you owe debts that cannot be discharged through bankruptcy, your creditors can continue to pursue you as they did before you filed.
If you're unsure whether to file Chapter 7 or Chapter 13 bankruptcy, it's a sign that you haven't done enough research to determine which form of filing would be best for your specific circumstances. There are a variety of online and offline resources, as well as financial advisors and attorneys with whom you can speak, who can help you determine which option would be most suitable for you. Chapter 11 bankruptcy only applies to enterprises and/or corporations, so you should not be concerned with it.
Chapter 7 and Chapter 13 are the most prevalent types of bankruptcy. Depending on the nature of your obligations, filing for Chapter 7 bankruptcy will wipe out the majority of your debts and provide you with a clean slate. Chapter 13 enables you to continue making payments to creditors for an additional three to five years.
" - https://www.affordablecebu.com/
