Be Disciplined Prior to Declaring Bankruptcy

Be Disciplined Prior to Declaring Bankruptcy """By discipline, we are attempting to emphasize the facts that must be considered prior to the insolvency stage. The problem of debts has been troubling American citizens for quite some time, and while many have attempted to balance their financial situation to the best of their abilities, with the assistance of debt consolidation companies and other debt relief programs, others have simply given up and chosen to file for bankruptcy. But even this must be accomplished in the most logical and effective manner possible. Consumers with unmanageable obligations may believe that filing for bankruptcy is their only option, but bankruptcy experts and credit counselors recommend obtaining the necessary guidelines. According to the American Bankruptcy Institute, bankruptcy may be a viable option for certain individuals:

• Who have had their wages garnished and bank accounts frozen as a result of judgments.

• The majority of debts, such as credit card debts and medical expenses, are unsecured.

• Who are receiving harassment from debt collectors.

• Individuals against whom litigation has already been filed.

Let us first contemplate the steps that must be diligently followed until the stage of bankruptcy:

The initial stage is to obtain a credit report, as all citizens are entitled to a free copy of their credit report each year. Individuals should conduct a thorough check of their credit report to ensure that all information is accurate and, more importantly, to ensure that all creditors are included in the bankruptcy filing. Many individuals make the mistake of assuming that since debt collectors have not contacted them in a long time, their debts no longer exist. However, if all creditors are not included in the bankruptcy filing, you run the risk of still owing money after the entire process has been completed.

There are numerous credit counseling agencies that receive funding from creditors and may recommend debt management plans that reduce interest rates but not the principal amount; therefore, you must choose your credit counselor carefully.

The bankruptcy law requires you to inform your creditors and debt collectors that you have reached the stage of declaring bankruptcy.

Obtaining a certificate attesting that you have undertaken credit counseling with a government-approved agency is a significant prerequisite for filing for bankruptcy.

The last thing you should consider is retaining a bankruptcy attorney, as the laws are too complex and the process is difficult enough to comprehend that it is in the debtor's best interest to seek legal counsel.

""Bankruptcy is a lengthy and arduous process, but if you've decided to file, you must act immediately or risk losing your valuable assets.""

" - https://www.affordablecebu.com/