Why Declaring Bankruptcy Isn’t the Only Option


Updated 4/11/22.

When it comes to bankruptcy proceedings, there are three common types: Chapter 11, business reorganization and rehabilitation petitions; Chapter 13, wage earner’s plans; and Chapter 7, individual petitions.

The bankruptcy law definition:
A bankruptcy filing is a legal attempt by a firm to free itself from the obligations of debt. The goal is always to have your debts forgiven.

Can one declare bankruptcy without a lawyer?:
Yes, it is possible to file for bankruptcy without a lawyer. However, you should restrict yourself to only filing a straightforward Chapter 7 bankruptcy case.

How can bankruptcy attorneys help?:
A bankruptcy attorney has a thorough knowledge of the U.S. Bankruptcy Code. They can help you successfully file a bankruptcy case since they understand the options available to you.

How to check bankruptcy filings:
To check the status of your bankruptcy case, go to the court where your case is filed. At the top of the screen, there’s a “Query” tab. Click on it and key in details about your case, which include your social security number, name, the filing date, and the case number.

The debtor in a bankruptcy case:
This is the person or entity that owes a debt to a creditor. When the debtor simply cannot pay the debt, they can voluntarily or involuntarily file a bankruptcy case.

Contrary to what most people believe, bankruptcy is not the end of the line. It’s an opportunity to start life afresh.

Did you know that in an average month, over 3,000 people are likely to file for bankruptcy? Bankruptcy is a difficult process. When you declare bankruptcy, you

Selling your annuity
  • Have to pay court fees — even though you?re already out of money
  • Usually have to hire a lawyer
  • May need to sell off property like your car or home
  • Will have to have that on your credit score for many years afterward
  • May face future difficulties securing loans

In other words — it?s no small decision. And besides all that, certain loans can?t be eliminated, including student debt and child support. You?ve got those loans for life regardless of how much money you do or don?t have coming in.

If you?ve struggled to pay your bills recently, whether it?s because of the high cost of medical care or because you lost a job, or something else entirely, there may be other options for eliminating some of your debt and getting out of near-bankruptcy. Let’s review.

Getting Cash for an Annuity Settlement

Are you currently receiving money from an annuity? You may be aware that you?ll be receiving this money for a long time — possibly decades, depending on the nature of the annuity. What you might not realize is that you can get cash for structured settlements rather than waiting until they pay out completely. Although you might lose about 10% of the value, you?ll ultimately make this up in avoiding all the loan interest you?d otherwise accrue. Paying off your debt now — rather than 20 years from now — is what matters the most for avoiding bankruptcy.

Paying More than Minimum on Your Cards

What many people don?t realize is that when you make the minimum payment option on your credit cards, all you?re really doing is paying off interest while barely touching the actual amount borrowed. You should try and get your bills down to zero as often as possible — this means you won?t be accruing interest.

Investing Your Money

Although it may be hard to think about now, you should try investing your money as soon as you?re possibly able. When money isn?t in your pocket, you?ll be less likely to save it — and when it?s invested your money will actually ?work? for you to make more money, making it easier to get by the next time something bad turns your life into a struggle.

Will you be investing, getting cash for an annuity settlement, or paying more than the minimum?

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