Helbing Law Office LLC
Experienced Appleton Bankruptcy Lawyer

- Free Initial Consultation

Appleton WI Bankruptcy Law Blog

Your situation determines how a bankruptcy will affect you

As the summer months near, some families will be considering taking vacations. Others are more worried about how they will make ends meet. There is a chance that the people in both of these groups will consider bankruptcy before the end of the year. While many people think that bankruptcy is an easy way out of their debts, this is far from the truth.

Whether you just made poor money management decisions or you had to rely on credit to make ends meet because of a life emergency, bankruptcy might be a viable option for reclaiming your finances. You should remember that this is a financially responsible way of handling the matter when you are too far deep in debt to recover and get all the debts paid.

Considerations for young adults thinking about bankruptcy

Some individuals may associate bankruptcy with older adults, but there are instances in which younger people might need to file. People in their 20s may not realize exactly how this decision can impact them. It is imperative that everyone who is young and considering bankruptcy take the time to evaluate the potential effects.

The years of early adulthood are a time when people should be building up their finances. Making good decisions and handling your money wisely can set you on the right path. Unfortunately, some people might not utilize credit in the appropriate manner and the debts may pile up. This can lead to your having to file for bankruptcy.

Determine if Chapter 7 is the right bankruptcy for you

A Chapter 7 bankruptcy is a serious matter that can't be taken lightly. When you are considering this, be sure that you consider what the process will be like for you, as well as how it might impact you. This type of bankruptcy is also known as the liquidation bankruptcy because your assets will be taken by the trustee and liquidated if they aren't exempt from the proceedings.

One of the most important things to some individuals who are considering this type of bankruptcy is finding out which of their assets are exempt and which are nonexempt. We can review your case and let you know what category your assets will fall into. Once you know this, you might be able to decide if this is the best option for your needs.

Choosing legal representation for your bankruptcy case

Filing for bankruptcy is a big life decision. When you are making it, you need to make sure that you have accurate information. This can be obtained by seeking the assistance of an experienced bankruptcy attorney. There are many things you need to think about when you are choosing one.

First, you have to be comfortable discussing every detail of your finances with the attorney. Only when they have all the information can they give you the appropriate options that you have for handling the problem. Any misstatement or omission on your part can make a significant difference in the choices you have.

Know what to expect when you file for Chapter 13 bankruptcy

People who have assets that they want to keep or who have the means to repay a portion of their debts might file a Chapter 13 bankruptcy if they need to reclaim their finances. This form is usually known as the wage earner's plan since you will be making regular payments to the bankruptcy trustee. Those payments will be used to pay off creditors in a way that is in accordance with the applicable laws.

It is imperative that you are completely honest about your finances when you are filing a Chapter 13. The court has to know that you will be able to afford the payments to the trustee and your regular living expenses. You might not have much left after all of this is paid, but that financial struggle will only persist until your case is discharged.

Bankruptcy is a legal way to regain control of your finances

Some people think that filing bankruptcy is a negative event in life. This mode of thinking comes from the lax laws surrounding bankruptc filings before they were overhauled. Now, bankruptcy is only a viable option for people who meet specific requirements. With the new guidelines, this is a viable legal option that people can use to get back on a responsible track with their finances. We are here to help you learn about how bankruptcy can help you to move forward and discover the financial freedom you deserve.

Filing bankruptcy isn't giving up on your debts. Instead, it lets your creditors know that you care about your responsibilities enough that you aren't going to string them along when you know you can't pay them. Depending on the chapter you file, you will either make payments to the trustee or your non-exempt assets will be liquidated to pay off your creditors. Whatever balances remain after your payments or after the liquidation will be written off.

Avoid making common bankruptcy mistakes

People who are in dire financial straits need to think about options for reclaiming their finances. One option is bankruptcy, but those who are considering this choice must ensure that they aren't doing anything that is going to negatively impact their case.

Remember that the decision to file doesn't mean that you are skipping out on what you owe. Instead, this is a legal option that lets you get back on track financially.

Chapter 7 bankruptcy may help you find financial relief

Being harassed by debt collectors isn't ever fun. When you simply don't have the means to pay the bills, it might be time to look into the options that you have to get a handle on your debts. One of these options is filing for bankruptcy, which might not seem ideal, but there is a big benefit for you to think about — the automatic stay.

An automatic stay means that creditors have to stop harassing you. They can't call you, write to you or send people by to try to collect money. We can only imagine how much relief this could bring to you. You will once again be able to answer the phone and check the mail without having to worry that someone is trying to get money out of you for past-due debts.

Exploring your options when past-due bills are weighing you down

Being in debt can cause stress in every area of your life. If you are behind on payments, you might feel guilty about taking any money to do enjoyable things in life. This can make you miserable. Your goal now might be to get caught up on the payments so you don't have the past due balances clouding your mind. If you are in this position, debt relief solutions might come to mind.

There are many different ways that you can handle this situation. The best one for you to use will depend on your circumstances. One of the first things you should do is contact the creditor to ask if they will set up a payment plan with you that you can afford and that will get you caught up on the bill. There is a chance they will decline, but at least you put forth the effort.

Important considerations for a Chapter 13 bankruptcy

Chapter 13 bankruptcy isn't an easy way out of debt. Many people may falsely assume that once they file, they are done. The fact is that a Chapter 13 filing means that you are going to make regular payments to the bankruptcy trustee. This fact alone makes it a more difficult option than the Chapter 7 filing, which doesn't require any payments be made to the trustee.

Most Chapter 13 bankruptcy plans require payments for three to five years. The issue here is that there are many variables that might come up during that time that could change your ability to make the payments to the trustee. It is possible that you might have some flexibility built into your repayment plan; however, this can often be difficult to handle ahead of time.