During this constantly evolving situation, presented by the COVID-19 pandemic, we want to assure you that Countrywide Pre-Paid Legal Services is fully operational and well positioned to navigate this challenge and will continue providing the services you have come to count on from us. We are available by phone or email.

Managing a Bankruptcy – There is No Need to Panic

stockfresh_743532_multi-ethnic-young-woman-agonizing-over-financial-calculations_sizeM-300x200

Bankruptcy can threaten anyone. It doesn’t matter if the person is a secretary or an executive; this disaster can strike and harm a person’s financial wellness. There is no question, but that declaring bankruptcy is a very personal and highly embarrassing situation.

Debt does not always come from using a credit card during the holidays. Many new employees are saddled with substantial college loan debt, and this must be repaid on a strict schedule. Medical emergencies can cost thousands of dollars and place significant stress on anyone’s budget. These are in addition to late penalties and charges that the credit card company will assess.

Those extra costs happen when a person forgets to make a payment on time. People often file for bankruptcy because they have not developed a proper budget for their finances. Countrywide Pre-Paid Legal Services wants to provide the assistance that everyone who is facing bankruptcy needs to survive the ordeal.

The Rules Governing Bankruptcy

The Bankruptcy Abuse Prevention and Consumer Action Act of 2005 put down some very specific rules for anyone who files for bankruptcy on or after October 17, 2005. The person must undergo credit counseling six months before they file. That same person must also complete the financial management instructional course so their debt can be discharged in bankruptcy.

Employers Can’t Ignore Bankruptcy

It is easy for an employer to ignore a personal bankruptcy and say it is not management’s problem. Yes, it is management’s problem! Bankruptcy can cause wage garnishments that disrupt normal payroll operations. Countrywide Pre-Paid Legal Services has a Financial Wellness Plan that can help those in the shadow of a bankruptcy court.

We Provide the Right Services

Countrywide will provide a debtor education course that meets the financial education requirement. Successful completion of the course allows the person to proceed with the bankruptcy. This kind of financial wellness service is precisely what an individual who is staring at bankruptcy needs, but Countrywide goes a little bit further to help people avoid bankruptcy.

Sale of assets could help a plan member dodge bankruptcy because the newly available cash can pay off debt. People don’t always know what assets they have. A Countrywide counselor can do an asset inventory to uncover whatever is marketable.

Anyone who is facing bankruptcy has serious debt problems. Countrywide has a Debt Management Plan for anyone whose financial wellness has come under a dark cloud. The plan provides ongoing counseling and customer assistance and can be used to convince creditors to lower payments or consolidate debt into an affordable repayment. We admit that this service costs a little extra, but for anyone who’s financial direction is starting to head towards bankruptcy court, it can be a lifesaver.

The seeds of bankruptcy are sown in a person’s spending habits. Financial Wellness Plan members could be living from paycheck to paycheck. That lifestyle will inhibit the financial planning necessary to escape problems. Countrywide can perform a personal budget analysis as a first step.

The best way to avoid financial disaster is a better understanding of cash flow. The budget analysis will uncover spending habits that are leading to debt issues. The counselor can point out the problems to a plan member and suggest ways to prevent spending from getting out of control. The counselor can also point out how developing a sensible budget will help a person make the required payments on time.

Clients Select the Options

We have several benefit options and a client doesn’t have to include all of them in the plan document. Employers may select those services they want their employees to have. We provide the administration and the counseling that the Financial Wellness Plan member needs. Every plan member, regardless of his or her financial situation, is treated with respect.

The threat of bankruptcy can be frightening. Countrywide will help plan members deal with bankruptcy and how to avoid it. If you have any questions about this benefit option or any of our services, please feel free to contact us. We welcome the opportunity to explain our services.