Filing for Bankruptcy: A Guide to Surviving Financial Distress

Wednesday, September 24, 2014, AM | 9 Comments

Filing for bankruptcy can be scary. You have fallen behind in your debt payments and feel like a failure, but that is water under the bridge now. If you cannot keep up, then bankruptcy might be the best option. Here is a helpful bankruptcy guide to surviving financial distress.

Filing for Bankruptcy A Guide to Surviving Financial Distress

  • Bankruptcy Helps Discharge Debt

    Before bankruptcy, debtors in England were tossed in debtor’s prison. In 1542, the Statute of Bankrupts was written to create an organized process for debtors to discharge their burdens. Bankruptcy is supposed to be a positive way for debtors to re-balance their debt portfolio.

  • What is your Plan – Chapter 7 or Chapter 13?

    Once you fall behind in your debt payment and decide that bankruptcy is your best path, then you must decide between Chapter 7 or Chapter 13.

    Chapter 7 is generally referred to as “Debt Relief” meaning that much of your debt will be written off as unrecoverable. Figuring out which bankruptcy plan will work best for you is often the most difficult part. You may need the help from a professional like those at Abakhan &Associates Inc. to help you determine which bankruptcy plan is best for you.

    Chapter 13 is “Debt Restructuring” and requires you to set up a plan to repay your debts. This restructuring might involve a longer time frame, but will not damage your credit rating as severely. Make sure you develop a sensible plan to get out of debt, then follow that plan. What do you want to achieve with bankruptcy?

  • Latest American Bankruptcy Laws

    In order to succeed with bankruptcy, you must understand how bankers think. Their goal is to keep you in debt in perpetuity. But your goal must be to balance your credits and debits.

    Before 2005, bankruptcy laws were very liberal to facilitate the free flow of capital to a burgeoning economy. In 2006, as debtors started to struggle, the bankruptcy laws were made more stringent. The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 was passed to discourage bankruptcy filings. There were people who would intentionally run up their debt and then file bankruptcy one, two or three times before the law was changed.

    After 2006, bankruptcy became even more difficult. Filers can only file a certain number of times during a designated time frame. Bankruptcy can help remove debt, so people can regain their life. But, bankruptcy laws cannot be abused.

  • Follow your Plan

    You will need a cogent, coherent and sensible plan to get out of bankruptcy. You can survive this financial distress, just make sure you identify the primary goals you want to achieve by filing for bankruptcy.

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  1. 9 Responses to “Filing for Bankruptcy: A Guide to Surviving Financial Distress”

  2. By Prince James on Oct 9, 2014, 3:04 am | Reply

    Bankruptcy is a last option for the people who are under lot of debt. One should consult bankruptcy lawyer to get a more clear idea about their options for dealing with debt.

  3. By stainless strainer browne foodservice on Oct 30, 2014, 11:53 am | Reply

    I’m amazed, I must say. Seldom do I come across a blog that’s both educative and entertaining, and let me tell you, you’ve hit the nail on the head. The issue is an issue that too few people are speaking intelligently about. Now i’m very happy that I found this during my search for something regarding this.
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  4. By Bankruptcy Gold Coast on Nov 24, 2014, 9:32 am | Reply

    Nice Post, and I may add that Bankruptcy is intended as a solution to insolvency. If you are insolvent, bankruptcy can give you a fresh start.

  5. By Correy Smith on Jul 20, 2015, 7:47 pm | Reply

    That is something interesting to have learned about bankruptcy law. That’s actually what my wife is learning about in her college courses. For her, it’s quite a lot to learn about especially in dealing with a wide a variety of cases.

  6. By Hazel Owens on May 3, 2016, 12:31 pm | Reply

    I didn’t even know that bankruptcy could be used to restructure your debts instead of just getting rid of them. While that probably isn’t possible for everyone, it’s good that there is an option available that won’t reduce your credit rating as much as normal bankruptcy. Like you said, it’s important to figure out what you want to accomplish before deciding which type of bankruptcy to file. Thanks for the article.

  7. By credit card help New York on Jul 13, 2016, 4:15 am | Reply

    A bankruptcy attorney can help you decide whether or not to file for bankruptcy. If you decide to file, an attorney can help ensure that your property is protected, all of your dis chargeable debts are discharged, and your creditors do not violate your rights, so that when you complete your bankruptcy, you will be on the right road to financial recovery.
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  8. By cheap bankruptcy attorney New York on Aug 1, 2016, 10:54 pm | Reply

    A bankruptcy lawyer can assist you and give you advice that is legally right that your family and friends don’t know about.
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  9. By credit card debt lawyer New York on Sep 6, 2016, 4:18 am | Reply

    Unlike most bankruptcy filers, attorneys generally have established connections with clerks, judges, other attorneys and various other parties to their clients’ cases.
    credit card debt lawyer New York recently posted…Chapter 7 Bankruptcy New YorkMy Profile

  10. By cheap bankruptcy attorney New York on Nov 15, 2016, 1:20 am | Reply

    Attorneys carry malpractice insurance, which means that if a lawyer makes a mistake on a bankruptcy case, the bankruptcy filer may be entitled to compensation for his or her losses.

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