Struggling with expenses beyond your means is stressful, but you have options. Bankruptcy is available for people who find themselves financially overextended with no means of resolution. You can avoid the hamster-wheel feeling by getting a handle on your debts, discharging the ones that bankruptcy permits and establishing a plan for proper credit management moving forward.
If you decide that bankruptcy is the right avenue for you, what happens next?
Gather your bills
When you file for bankruptcy, you have to include all of your creditors. The court will not permit you to pick and choose which ones to include. Gather all of your most recent account statements and records to provide to your bankruptcy attorney for the paperwork.
Notify your creditors
If you feel overwhelmed with creditor calls and notices, call your creditors right away after you file your bankruptcy. Provide each creditor with the case number, court district and contact information for your attorney. When creditors receive notification of bankruptcy, they legally cannot contact you directly anymore. All contact must go through your attorney.
Consider credit counseling
Many bankruptcy courts require credit counseling as part of the case. Even if counseling is optional for your district, consider attending anyway. Credit counseling provides you with skills and techniques to not only manage your money but rebuild your credit as well.
Financial struggles do not have to last forever. Bankruptcy can provide you with the fresh start that you need to manage your expenses and your credit more responsibly going forward.