What happens when you file bankruptcy? Firstly, the automatic stay provisions under the Bankruptcy Code prohibit your creditors from contacting you regarding your debt. Filing bankruptcy stops creditor harassment and those annoying and frustrating creditor calls. However, you are probably wondering what the process looks like - when will you have to go to court, how many times, what a trustee does, how long it takes, etc. We answer questions like these each day as bankruptcy attorneys.

Congratulations, you have successfully completed your bankruptcy and you are ready to take your first steps on the road to rebuilding your finances. A very important element of any sound financial plan is budgeting. Some people believe that budgeting is too difficult or that budgeting is only a way of denying yourself what you truly want. On the contrary, budgeting makes it possible for you to achieve the things you want by helping you manage your money. Budgeting can also help you save more money by revealing any issues or incongruences between your income and your expenses.

Are you considering filing for bankruptcy relief? It is possible to do this on your own (without a bankruptcy attorney). You will have to act as your own legal representative – which requires an understanding of the Bankruptcy Code, not to mention court etiquette and filing procedures. Incompletely or improperly filing bankruptcy will cause more headaches and issues than you had to begin with. Once you file a bankruptcy case, you may not be able to undo any mistakes you make while representing yourself.

Dealing with overwhelming debt and coping with the stress associated with a financial crisis creates emotional burdens and causes damage to your financial well-being. However, bankruptcy provides a real solution to a variety of difficult financial situations. For example, a debtor can discharge or “wipe out” unsecured debts through the filing of a Chapter 7 bankruptcy case or reorganize debts into a manageable repayment plan through a Chapter 13 bankruptcy case. Through the bankruptcy process, debtors learn where things spun out of control and how to handle or prevent debt in the future. In addition, when the bankruptcy case is completed, you are able to begin rebuilding your financial affairs.

Many clients ask what life after bankruptcy will be like and how long it will take to recover from filing a bankruptcy. For most, life after bankruptcy is much less stressful. You will be filled with an overwhelming sense of relief as bill collectors stop calling, creditors stop breathing down your neck and you can finally see hope for your future, free from the burden of debt. You’ll get to feel optimistic about your future again, happy that you can start fresh and begin to recover and rebuild. No matter what emotions are felt after a bankruptcy is complete, there is one common thread that weaves itself through life after bankruptcy -- the ability to learn from past financial mistakes.

Because each person’s financial situation is different, it is difficult to answer these questions without first taking the time to fully understand the circumstances that brought you to this point. Some debtors have the ability to repay some or all of their debts if they are given the opportunity to reorganize their debts into a manageable repayment plan. On the other hand, some debtors do not have any funds available to pay creditors after paying for their basic living expenses. This is the purpose of having different types of bankruptcy, so that debtors may find relief under the bankruptcy code according to their specific financial needs.

For anyone familiar with bankruptcy and student loans, you may be wondering how these two topics could have anything in common. First, bankruptcy is designed to relieve you of your debt. On the other hand, incurring student loans places you in debt. Furthermore, student loans are typically non-dischargeable (there are exceptions in some cases) in bankruptcy making them one of the few unsecured debts that survive a bankruptcy filing. It would seem that these two concepts would be the exact opposite of each other; however, there are similarities between bankruptcy and student loans.

Almost all of us will experience debt problems at some point during our lifetime due to a financial crisis such as a job loss or due to our own devices. Some individuals cause debt problems for themselves through poor spending habits, abuse of credit cards, gambling, co-signing loans for others or because of a failure to budget and manage money well. Because they feel their debt problems are due to something they did or failed to do, they may wonder, “Is personal bankruptcy a good option for me?”

According to a study conducted by NerdWallet Health, over twenty percent of Americans will struggle with medical debt this year. For some, the best alternative is to file bankruptcy. Medical bills have been an ongoing financial problem for many Americans for more than a decade. In 2009, more than 60% of individuals who filed for bankruptcy relief did so due to medical bills. According to a report published in the American Journal of Medicine, the number of individuals who had to file bankruptcy due to medical bills rose from 46% in 2001 to 62% in 2007.

Why do so many people who get divorced fall into financial trouble?

As a legal advisor, I've come across many people who've gone through some extremely nightmarish situations due to debt. They have been lied to about the financial services they selected, made poor financial decisions or encountered bad debt consolidation companies with programs they were assured would help.

Divorce is one of the top 5 reasons many debtors turn to bankruptcy. If you are going through this situation, know that you are not alone. The following is one woman’s story about how divorce and bankruptcy turned her life around, in ways she could never have expected.

Making the final decision to file bankruptcy can be challenging, but my clients report feeling immensely relieved. Simply settling on this decision provides relief because you have a plan to move forward and out of your financial darkness. Technically, nothing official happens until you file your petition. However, your peace of mind will lighten your load and allow you to think and see your future clearly.

If you are in debt and looking for a way to get out, consider ALL of your options. When all of your options are on the table, take time to think through the advantages and disadvantages of each and how they will affect your life in the long run. Sit down with a legal professional, too, to discuss your options and get advice and opinions about which is best for your specific situation. 

The effects of filing bankruptcy are felt almost instantly. The moment you decide to file bankruptcy you will likely feel some of the stress fade because you know the end of your financial nightmare is in sight. Once your petition is approved, you can begin the journey to debt freedom, feeling lighter and happier than you have felt in a long time. Put the nightmare behind you and begin living the life you have been dreaming of.

PR For Immediate Release: