About Me

Understanding Bankruptcy Cases and Outcomes

Hello, my name is Quianna Ridalgo. I enjoy talking to others about bankruptcy case outcomes. Court officials handle each type of debt, from credit cards to home loans, differently. Debtors must carefully prepare themselves for the court proceedings to cope with the outcome appropriately. The way creditors handle the discharged debt also interests me. Bankruptcy attorneys assist their clients with each step of the bankruptcy process from filing paperwork to meeting with creditors. Debtors and creditors both receive counsel that helps them move forward appropriately at every point in the case. The information I share on my site may help you learn about everyone's role in these complex cases. Feel free to come by anytime to learn more information about this interesting subject.

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Understanding Bankruptcy Cases and Outcomes

Before Bankruptcy: What To Consider

by Loretta Harris

When the stress from your bills and financial life are so overwhelming that you can't take it anymore, bankruptcy can seem like a welcome solution. However, to truly recover from this period in your life, you'll need the information and tips here before you even complete your bankruptcy petition.

Know that All Your Debts Might Not Disappear

A common misconception about bankruptcy law is that every single debt you've got will be cast aside once you complete your bankruptcy petition. This is not always true. Depending on your income and expenses, you might need to file a chapter 13 version of bankruptcy instead of a chapter 7 bankruptcy. If that happens, the trustee that handles your case will arrange payments to various creditors that you'll have to make. Even if you do file a simple chapter 7 bankruptcy, there are some debts that are prohibited from being eliminated. Some debts that can't be erased, or discharged, include student loans.

In some cases, you might want to specifically exempt certain items from being part of your bankruptcy petition. If you are still paying for your car or truck and need it as transportation for work, you may be able to continue making those payments.

You Need to Start Saving

Even if you're in a financial crisis, retaining a lawyer and filing your bankruptcy will cost some money. The amount will depend on the attorney you use and their fees for the type of bankruptcy you're eligible for, but it's important that you start putting some money aside for those costs as soon as you suspect you'll go bankrupt.

Saving is also important for life going forward. Some of the financial problems you've had may be in part because you had no extra money saved. With the relief provided by bankruptcy, you should make a point of sending money to a savings account so that you can have a financial cushion of sorts later in life.

You Need a Plan for Your Future

In addition to saving, you need to make a clear plan for how you'll deal with money in the future. If you don't want to go through bankruptcy multiple times, you need to think hard about why and how you ended up in this spot and how you will be able to support yourself from now on. Will you need to get a better-paying job? Will you need to live within—or even below—your means? Spend some time really thinking this through so that you can avoid ever using bankruptcy as a solution again.

Once you're able to think about all the suggestions here, your bankruptcy filing is the next step. Your attorney, an expert in bankruptcy law, can help you complete paperwork and take appropriate action so you won't have any problems and can soon turn over a new page in your financial life.