Streamlining the Bankruptcy Process by Prioritizing Debts

Streamlining the Bankruptcy Process by Prioritizing Debts """Heavy debt is currently a burden for millions of Americans. To alleviate this burden, many individuals declare bankruptcy. Bankruptcy is not a sign that you have """"given up,"""" but rather an opportunity to eliminate many of your debts and make the remainder much more manageable. However, many individuals who file for bankruptcy on their own find it challenging to prioritize their debts.

Paying the rent, including backed rent, or your mortgage, if you own a home, are the debts you should prioritize above all others, as they are essential to your livelihood. If you do not prioritize these debts, you risk being evicted or having your home repossessed. If you are making payments on a vehicle that is required for your profession, you should also make those payments.

Other Debts

However, if you are ordered to pay child support or alimony, you should give these the highest priority possible. Child support arrears can result in severe legal consequences. You may be able to work with the court and your creditors to make child support payments simpler, but it is still a requirement. If you have any delinquent taxes, they can lead to legal difficulty and should be treated accordingly.

After your living expenses and legal obligations, the majority of your debts rank second in importance. Filing for bankruptcy enables you to eliminate the majority of your credit card debt. Depending on the circumstances, you may also be able to consolidate your remaining debts into a single monthly payment.

A bankruptcy attorney can help you make the bankruptcy system work for you if you are considering filing for bankruptcy.

" - https://www.affordablecebu.com/