What does it mean to be bankrupt in the United States?

Being bankrupt in the United States means being in a state of bankruptcy. The state is occurring when you cannot cover your expenses and manage your money for the next 12 months after the last day you received the tax return.

I am bankrupt, what can I do?

If you are bankrupt, you can do more than one thing. You might be thinking that this is the end and many Americans have this same feeling when they are going through the difficult situation of bankruptcy. But you don’t need to feel that way anymore if you’re reading this article, so you might want to learn about the following:

Consider filing for bankruptcy with an attorney

Having the support of a bankruptcy attorney can be one of the best decisions you can make. An attorney is familiar with the system and has studied these laws to help you through the difficult process of bankruptcy. An attorney is prepared to make sure all of your needs are covered and you will be more secure during the process.

Consult with a credit expert

It is important to seek consumer credit counseling with an entity approved by the United States Trustee before filing for bankruptcy. A credit expert is also familiar with the system and studied how to manage your capital, expenses and income. Once you’ve filed for bankruptcy, they can help you create a payment plan to solve your financial problems.

Consider a bankruptcy agreement

If you are considering establishing a board controlled arrangement (chb), it is important to consult an attorney or credit expert before proceeding with any bankruptcy strategy. A board-controlled settlement is designed to help you get up after you’re out of state and get on with your financial life.

Write a detailed plan

Once you have decided which option is best, write a plan detailing all your income generating activities and identify how the money is currently being used. Choose what’s right for you and focus on developing a plan to get out of this difficult situation.

What to do with debts to avoid bankruptcy?

If you are behind on your credit card, car or home loan payments, there are many options to try before filing for bankruptcy:

Negotiate the debts

If you are trying to deal with past due bills, you can talk to the creditor and offer a lesser amount for the loan.

Foreclosure or lease

If you are bankrupt it does not mean that you will have to lose your home if you have a loan on it. If you started before filing for bankruptcy, you surely have the right to redeem yourself (but depending on your statutes this may not be the case). If your loan is in foreclosure, you have a chance to redeem the mortgage before it is sold.

Put your assets up for rent

If you are living in the home and are not willing to lose it, you may be able to rent it to cover the monthly payments. Many times this means moving only until you recover after being in bankruptcy for at least two years.

Reduce your expenses

If you are bankrupt, this means that you are willing to do whatever it takes to get out of your difficult situation. If you are living in a larger place than necessary or have a lot of outstanding bills, you may be able to survive on less. A drastic budget cut is the only way to cope with bankruptcy.

Filing for bankruptcy is a very difficult decision and you are always on hand for advice before taking any steps. If you are aware of what you are going to receive, you may be able to overcome your financial situation and move forward with your future plans.

If you are going through bankruptcy and need the help of an expert attorney, please contact us through the following form:

You can also communicate through (909) 319-7103 / 1 (800) 559-7170, visit us at 228 West C Street Ontario CA 91762 or send us an email explaining your case to info@sleeplessattorney.com

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