If you’re like many people across the United States it’s likely that you have many of your bill payments coming out of your account in an automated format. Americans aren’t writing checks or submitting online payments.
Making sure that your bills will still get paid after you file for bankruptcy can be important. An automatic stay will make sure that all collection activity will be halted from your creditors until the bankruptcy is resolved and if you have automatic payment set up for your bank, this means that you may have to create new ways to pay off your bills.
The process of records is far from perfect and this means that many of your automated payments will try to draw from your account. Contacting each of these creditors or charges can make sure that you can line up everything within your account before you file for bankruptcy and prevent the chance that you could miss a payment.
It’s likely that you will still want to continue making regular payments on items like your utilities, rent and more. You can still pay the bill or find a flexible way to pay off your most essential expenses with your landlord or with the service company. Make sure that you put these processes in place and have all the appropriate receipts so that your creditors will not attempt to withdraw more from your account in order to recoup funds. Ensure that you are not paying any of these expenses in cash either as this can raise a red flag for your repayment plan to creditors.
If you are undergoing bankruptcy for the first time it can be essential to work with a representative to determine which bills may come out of your account and what needs to be done to maintain your various expenses over time.
With proper preparedness you can make sure that your automatic bills will continue to come out of your account as you file.
This post was written by Trey Wright, one of the best bankruptcy attorneys in Tallahassee, Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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