Life During Bankruptcy

Perhaps you have experienced a divorce, or a serious illness, or the loss of a job. Life can throw curves that are unexpected and can cause financial devastation. Statistics show that in many cases those who file bankruptcy are better off than those who do not. It is important to remember that bankruptcy is not a moral decision, but a financial one. It is an opportunity that exists within our legal system to create a fresh financial start. However, while you are in the process of bankruptcy, it can feel overwhelming. Knowing what your life will be like during bankruptcy can help the process.

Bankruptcies Are Public Information

Both Chapter 7 and Chapter 13 bankruptcies are public information. As you consider your life during bankruptcy, realize that there is no longer such a stigma associated with filing bankruptcy as there once was. If you file a Chapter 13 and have a reorganization and restructuring of debts, your employer will likely find out as some bankruptcy trustees will send a form to your employer to set up that deduction automatically. It is possible to request that the court allow you to pay the trustee directly if you are uncomfortable with your employer knowing about your bankruptcy.

Additionally, if any of your creditors are your family or friends, they will also find out as the bankruptcy trustee will send out a notice to all creditors as required by law. Again, while this may be emotionally uncomfortable, the bankruptcy process is intended to allow a person to create a fresh financial start.

Life During Bankruptcy: Paying Your Bills 

Even though you are going through a bankruptcy, you are still required to pay your current post-bankruptcy bills, and remain current on your house, car, or other debts. Maintaining your payments on these debts is important, as if you are behind on your payments at the end of the bankruptcy there is a chance that the court will not issue you a discharge.

Request a Free Consultation With Silverberg Law Firm LLC

When you are searching for an attorney, it is important that you find someone who understands your goals and your business. You need an attorney who will pay personal attention to your situation. You need someone smart, tough, and someone will give you a clear picture of your situation at every juncture so you can make decisions. At Silverberg Law Firm LLC we understand your situation. We provide legal advice, support, and guidance when you need it most.