Your Personal Bankruptcy Checklist

You are earning a comfortable salary and so is your spouse, so the very thought of bankruptcy must be a faraway one. You can never be too sure though, in recent times economic uncertainty has become a regular phenomena and there can be little done to control it. While you may not be able to predict the future, whether economic or otherwise, you can definitely secure it. And how do you go about doing this? Simply by keeping your own bankruptcy checklist of course. Here are a few:

1) Too many obligations?

Think once. Think more than once. How many loans have you going on? Are you struggling to pay off the installments every month? Are there any unpaid credit card bills? If your answer is yes for all these questions then, you are on your way to bankruptcy slowly but surely.

Your cash inflows and outflows need to be well balanced. Obviously, your inflow should be of higher value when compared to your outflow. When you try and balance this equation, there will be a better chance for you to face off any financial adversities.

2) Forgotten medical insurance?

Have you forgotten to avail medical insurance or don’t think it’s worth it? Seek a reliable professional to help you choose a suitable medical insurance so that you or anyone from your family needn’t be bombarded with medical bills when there is an unexpected hospital visit. This is one of the common forms of bankruptcy across the world.

3) Is your life insurance sufficient?

Although most of us avail life insurance, are we sure of how much is enough? If you have a significant debt burden, then ensuring your family is shielded from it is of the utmost importance in your absence. Evaluate carefully and modify your insurance plan if necessary.

4) Remember your good old piggy bank savings?

There is a reason everyone is gifted piggy banks during their childhood. Inculcating the habit of saving a certain sum everyday will indeed go a long way. Obviously once we grow up, banks replace our piggy banks, apart from deposits you make. It is always advisable to have at least half a year’s salary in a savings account, use this as your emergency fund.

5) Too much of a friendly guarantor?

Acting as a guarantor every time a friend asks is not a good move. There are so many reasons you shouldn’t do this: one good one would be using your assets as a collateral. Don’t fall prey to sentiments and go bankrupt.

If you have been able to clearly analyze the answers for the above checkpoints, then you will be able to get an idea of your financial position. So, start saving today, for a surer tomorrow.

How To Avoid The Pitfalls Of Personal Bankruptcy

Many people find themselves in financial trouble every now and then. It can feel hopeless and like the end of the world. This is because people don’t realize that filing bankruptcy is a viable solution to their problems. Filing bankruptcy is not as hard as we have been led to believe.

Do not get an attorney for your bankruptcy when you are feeling overwhelmed. You have got to be levelheaded when you hire a lawyer. After all, you will be expected to pay him/her for services. Find out upfront what you will have to pay any lawyer before you hire one.

If you lose your job, or otherwise face a financial crisis after filing Chapter 13, contact your trustee immediately. If you don’t pay your Chapter 13 payment on time, your trustee can request that your bankruptcy be dismissed. You may need to modify your Chapter 13 plan if, you are unable to pay the agreed-upon amount.

When meeting with a personal bankruptcy lawyer, be sure you have all of the necessary paperwork with you. This will make the whole filing process go much easier and quicker. Some of the paperwork you should have with you includes loan documents, credit card bills, and any other relevant financial documents.

Make sure that you fully understand the implications of declaring yourself bankrupt. Once you have filed for bankruptcy, you will find it difficult to secure any credit at all. While you may not see that consequence as a huge problem at the moment, if you wish to purchase a home in the future, or lease an automobile, you are probably going to need the credit.

Do not think of filing for personal bankruptcy as a shameful thing. Going through the filing process often brings out the worst in people, causing them to feel a variety of negative emotions. But, there is nothing positive about feeling this way and it can actually affect your mental state. If you are filing for bankruptcy and you are thinking negatively about the situation, make an effort to stop that now.

Do not be afraid to file for bankruptcy. Sometimes people find themselves so overwhelmed with debt that they just decide to do nothing and bury their heads in the sand. This is the worst thing that a person could possibly do. Instead, they should file for bankruptcy because by doing so, they are taking positive affirmative action and giving themselves another chance at managing their finances.

Never rely upon bill collectors to share accurate information about your debt and bankruptcy. Some unethical collectors tell consumers that their debts are exempt from bankruptcy rules, but this is actually only true for a few special kinds of debt. If a collection agency provides you with inaccurate information like this, report them to the Attorney General’s Office in your state.

Do not make the mistake of running up lots of new debt just prior to filing for bankruptcy. The court will take all of your spending into account, including recent debts you’ve incurred, and the judge may not be willing to waive debts if it appears that you are trying to game the system. Make sure that your spending habits reflect a true desire to change.

Make sure you are aware of all your options before you file for bankruptcy. For example, you may want to think about credit counseling. There are some good non-profit organizations that could help you. With their assistance, you can reduce the payments you have to make and even get some of the interest removed from your debts. You pay the organization, and they pay creditors for you.

Consider hiring an attorney to help you. The laws surrounding personal bankruptcy can be complex at best and confusing and convoluted at worst. If you feel unsure of how to go about moving forward, consulting with an attorney may be the best move you can make. An attorney can be the guiding hand you need to make the process as smooth as possible.

When you file bankruptcy, you want to avoid finding yourself in similar dire financial circumstances, so planning for and making a post-bankruptcy budget is a good idea. When you can create such a budget and stick to it after bankruptcy, you are far less likely to find yourself in the same position in the future, ensuring you are more financially free.

If you see yourself racking up credit card debt again after filing for bankruptcy in the past you need to stop yourself before you end up back to square one. Cut up any credit card s that you have and get in touch with a credit counselor as soon as you can.