Debt can be a complex problem. In many cases, people take on a debt in several ways that compound until it is out of control. The more debts that you have, the more complex your debt portfolio becomes. Cases with complex debt portfolios require careful evaluation to determine the best course of action. Not only does it make it harder to manage your debts so that they can be paid off, but it also makes it harder to know when you should have filed for bankruptcy.
Fortunately, it is possible to get out of debt through bankruptcy, even if you have a lot of debts in different places. Here is how Saint Cloud bankruptcy attorneys handle cases with complex debt portfolios.
What Makes a Debt Portfolio Complex?
A complex debt portfolio is one where the debts are owed to many different creditors at varied amounts. The portfolio can also include debts that cannot be discharged in bankruptcy but should be accounted for in the process. Your bankruptcy attorney has to find a way to manage multi-layered debt during the bankruptcy process. The more debt and debtors you have, the more difficult it is to manage your debt portfolio.
Catalog Every Debt You Have
The first step is to catalog your debts. Having a complete list of all of your debts makes it possible to coordinate claims for each one. One of the biggest problems that you can have when dealing with a complex debt portfolio is that certain debts are forgotten about. Make sure that every debt is accounted for, no matter how big or small.
You may worry that the list of debts is too complex to handle, but that is exactly what bankruptcy attorneys are supposed to do. They have the experience and resources to handle complex debt portfolios while ensuring that nothing is forgotten or falls through the cracks.
Identifying Which Debts are Exempt
As you work with your attorney to identify all of your debts, you will also identify your assets. This is an important part of the process because your attorney can help you protect some of those assets. Bankruptcy allows for certain assets to be exempt from liquidation so that you can keep important things like you house and family heirlooms.
The key to this is that your attorney has to declare them at the beginning of the process. You may have a lot of assets that can be sold to pay off debts, but your attorney can find a way to use as few of those assets as possible to pay as much of those debts as possible. That way, you come out of bankruptcy with most of your assets intact.
Organize Debts by Value
The next thing that your attorney does is to organize your debts by their value. This makes it clear which creditors need to be handled first to make the biggest impact on your debt. Your lawyer can negotiate with them to see if the amount that you owe can be reduced, making it easier to pay off the debt with fewer assets being liquidated.
Monitor Repayments
Once the repayment process begins, your lawyer can help monitor the repayments. Complex debt portfolios can make it difficult to see who is being paid and how much. Having your attorney track the debt repayments means you have an extra set of eyes on the problem, helping you stay on track with the plan and making progress.
Choose Kain + Henehan for Bankruptcy Support
If you think your debt portfolio is a lot to handle, then choose a bankruptcy attorney with experience managing multi-layered debt. Work with Kain + Henehan, bankruptcy attorneys in St. Cloud, MN, to help you get back out of debt. Contact Kain + Henehan by calling (612) 438-8006 or filling out the online form so we can work through this process together.
