The ExecRanks is Now AdvisoryCloud - Click Here to Read the Announcement

January 03, 2019

Find the Financial Balance with Bankruptcy Credit Counseling

Carol Ringwald

Carol Ringwald
Owner/Credit Medic Group

Share This Post

A lot of people are facing difficulty in repaying their unpaid bills especially for those going through the current government shutdown. Some are even taking more and more payday loans and at the end, finding themselves knee deep in debt. They have crossed all the limits for getting approved for other debt relief options. So, to them the only way for getting out of debt is filing for bankruptcy.

If a person is intending to file insolvency, he or she may not be acquainted with all the complexities of the legal procedure. Bankruptcy is a federal court process that needs legal representation. Only a bankruptcy education can help him go through the process easily.

Deciding on a good financial system through the many experts out there is the first step toward financial freedom and as many believe, just simple survival. Due to the overwhelming rate of bankruptcy filers failing to keep it together financially, focus and professional help is the key to success. Understanding personal habits leading to financial ruin allow for better future planning including savings for emergencies.

Sticking with one system increases the chances for success. Counseling may include tracking expenses, using an envelope system, whereby you segregate your money physically into different envelopes (e.g., groceries, clothing, rent) and changing habits. Making these changes may be difficult, but with professional planning success is just a matter of time. Taking advantage of bankruptcy credit counseling offers the required structure and knowledge for a person to be successful and develop a sound financial management plan.

A lot of people rush into bankruptcy because they think that it is an easy solution to their problems, it isn’t. The biggest thing that will be covered during counseling is looking to see if you have other options.

At the end of this you will be given a bankruptcy certificate that you are required to present when you are filing for bankruptcy. The purpose of this counseling is to make sure that you understand how the bankruptcy procedure works, the consequences of it and whether or not it is really necessary or if you have other options. Bankruptcy is a last resort. You will likely have other options that would be better for you long term. In most cases the other options are going to take quite a bit of sacrifice on your part. However if you can at all work out a plan that will allow you to pay off your bills you should do just that before considering filing for bankruptcy.

Check out the list of approved credit counseling agencies here, provided by the U.S. Department of Justice. The credit counseling agencies listed are nonprofit budget and credit counseling agencies approved to provide counseling that individuals must take before they are eligible to file for bankruptcy protection.

Comments? You can contact me directly via my AdvisoryCloud profile.

Share This Post