A few years ago, when I realized that I couldn't pay my mortgage anymore, I knew that I needed to do something to correct my finances. It seemed like I just couldn't catch a break, and after losing my job, I knew that I was in trouble. I started looking for new work, but I knew that I needed to fix my credit somehow. I was at the end of my rope, until a friend talked with me about the possibility of declaring bankruptcy. She explained that it helped her to start over. I met with a bankruptcy attorney who was incredible to work with, and I was amazed at how much it helped my situation. Check out this blog to learn how working with a bankruptcy professional could help you.
You may have taken on debts with all intentions to pay them off, but sometimes, life happens. You may lose your job, face health issues, or even see your salary substantially change. Unfortunately, these life changes can make it impossible to pay off the debts you owe, and it can rapidly become a dire situation. Filing bankruptcy can save you from complete financial ruin and the stress that goes along with debt collection processes. There are certain things you will wonder if you should stop doing before filing bankruptcy.
Should you go ahead and stop paying your bills?
This question can be debatable because every situation is different. If you know that you are going to be filing bankruptcy but you are waiting to meet with a bankruptcy law firm, it is easy to assume that going ahead and stopping paying your bills is fine. However, these decisions can affect you negatively in some cases. Before you make any definitive decisions about completely disregarding your bills, it is always best to discuss your personal situation with your attorney.
Should you stop communicating with creditors?
When the bankruptcy process begins, your attorney will actually work with you to get in touch with the creditors that hold the accounts you owe. The creditors will be notified that you are in the process of filing bankruptcy, and they will no longer be legally allowed to communicate with you, try to obtain payments from you, or try to perform other collection procedures. Therefore, it will no longer be your responsibility to let debt collectors know anything; you should actually reach out to your attorney if debt collectors continue to try to contact you.
Should you stop seeking short-term loans?
If you are in a bad financial situation, and a lot of people are just before having to file bankruptcy, it is common to seek out short-term loans like payday loans or title loans. It is important to keep in mind that any debts that you acquire within 60 to 90 days before you file will not be debts that can be included in a bankruptcy discharge. You will have to make arrangements to pay back these loans that you take. So, even though it is possible and OK to obtain these short-term loans if you can, you should never do so with the assumption the debts will be discharged once the bankruptcy goes through.
For more information, contact a bankruptcy law firm.
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