If you find it difficult to meet your minimum financial obligations every month and you have also fallen behind on your payments, it is time you try to strike a balance between your monthly income and expenses. How will you deal with debt collectors? And how will you consolidate your debts? Similar questions may be haunting you always. Falling into debt is a very common problem faced by many people in United States and all over the world. Credit card debts are very common. If you are unable to control your finances properly, you will find yourself dragged into a vicious cycle of debt. Your expenses should never exceed your income. It spells doom. However, there may be instances when you may have to shell out money due to a medical emergency or health problems.
If you are not being able to manage your finances judiciously, take professional help and talk to financial consultants who can assist you in managing your debts effectively. You can also surf the net to get online help. You will come across several debt management articles and tutorials. There are many debt relief options that can help you get out of debt. If you are not being able to decide which debt help option to opt for, a credit counselor can help you in taking a decision. Once it
has been identified that bankruptcy is your only option, next is- how to declare yourself bankrupt?
There are many legal aspects that need to be addressed when you file bankruptcy and these can be best tackled by a bankruptcy lawyer. Under the New Federal Bankruptcy Laws, you have to be eligible for filing for bankruptcy. The New Bankruptcy Law has made it mandatory that you have to undergo a credit counseling session prior to filing for bankruptcy. You also have to undergo the Means Test also to find out if you qualify for Chapter 7 or Chapter 13 bankruptcy. In other words, filing for bankruptcy has been made tougher. In this regard, an attorney will be able to help you with the Means Test and accordingly guide you in your attempt to file bankruptcy.
When you declare that you are bankrupt, there are several benefits you can enjoy. Automatic stay, a court order comes into effect. Your creditors are informed that you have declared bankruptcy and they don’t harass you for making payments for debts. Automatic stay is just the tip of the iceberg. There are several procedures that need to be followed when you file bankruptcy.