Useful tips from Brian Linnekens to protect yourself during Bankruptcy

When you are struggling from financial crisis and not able to pay your debts, then
filing for bankruptcy is the best solution of your problem. According to Brian
Linnekens, It is a serious issue, you need to have a fresh look at it once, before filling
and make proper plans in order to get rid of the problem.
Bankruptcy will help us to clear credit cards bills and other unsecured bills excluding
student loans and overdue taxes. For such issues the financial plan created as a part
of bankruptcy will helps you.
Before filing for bankruptcy you need to understand well which areas they are
covering and which are not covered. A bankruptcy attorney will give suggestions
that you need to take for your bankruptcy case. Along with his/her suggestion you
need to do a few other things proactively.
Create a new bank account
The very first thing you need to do is to open a new bank account. It is essential even
if you file for chapter 7 and take automatic stay against collections, some creditor
banks and credit unions are legally allowed to take their debts against funds you
To protect yourself from these situations you need to open a new account in a bank
or any other financial institution from where you had not taken any credits or loans
previously. Transfer your direct funds or any other funds that you have in this
Stop all automatic payments
Once you decide to file for the bankruptcy the next thing you need to do is to stop
your auto debit payments as soon as possible. By doing this you will save yourself
from penalties and other fees that is linked with failed transaction. You should use
your new account for making payments of car loan, cell phone or other utilities.
These small things will help you a lot during bankruptcy.
Cut up your Plastics
The key concept of bankruptcy is to give you the chance to get rid from debt that
you can’t pay due to some reasons. Using credit card just prior to filing for
bankruptcy is a questionable thing and on this basis a card provider can accuse you
for fraudulent activity. So once you decided to file for bankruptcy you should avoid
using credit card.
Create a workable budget
You need to create a workable budget so that you are able to repay your debts only
then bankruptcy will work for you. According to chapter 13, all the plans for the
repayment of debts are set according to the ability of your paying. After some time
it is set according to your disposable income.
When you file for the bankruptcy you need to follow certain set of rules and a good
attorney will help you in doing this. You need to appear in front of bankruptcy
trustee with your attorney for a few questions that you need to answer. A court will
issue a Notice of Commencement for the case, which decides the date and time of
meeting with the creditors in order to take the clarifications.
During bankruptcy proceedings you need to go through several issues – creditors
can make objection on your claim, a trustee may disapprove your case as the
required paper work is not complete or even due to late submission.
The case is not over even after your bankruptcy plan is set. You need to make
various kinds of communication even after that.
When you get mail from your attorney, creditors or trustee; you need read it
carefully and respond to it accordingly.
In bankruptcy you need proper guidance and a constant communication with your
bankruptcy attorney will protect you during the bankruptcy.
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