Is Filing Bankruptcy Online Possible When Pursued by Debt Collectors?

Published: Nov 25, 2020

You may be getting called by debt collectors such as TransWorld Systems from 8552457098 or Capital One from 8009556600 and wonder whether you can file bankruptcy online. 

A significant number of bankruptcy courts in the United States have an online filing system. This online filing system gives room to bankruptcy petitions and documents to be submitted online. However, this does not affect individuals that prefer filing for bankruptcy via mail or by visiting the bankruptcy court.

Most bankruptcy jurisdiction only permits lawyers to file for bankruptcy online. And attorneys must follow a process to be approved to submit petitions and documents online. As such, you probably cannot file for bankruptcy online if you’re not planning on hiring an attorney. 

What’s the next best thing IF TransWorld Systems and Capital One are Contacting You?

When searching for the right attorney, you should opt for one that can handle work remotely and work online.

You should also estimate whether you’ll qualify for a Chapter 7 bankruptcy discharge before applying. It is also imperative to have an estimate of your Chapter 13 payments and research attorneys in close proximity to you.

Beware of Bankruptcy Online Services

It is easy to see adverts online that claim to offer you the opportunity to file for bankruptcy online without using an attorney. It’s essential that you know that these companies are not law firms, and they won’t file for bankruptcy for you—or anyone that applies. What they offer is the opportunity to complete bankruptcy forms online. However, you’ll still have to mail the form to a bankruptcy court or take it to them in person.

While it’s not necessary that you file for bankruptcy with the help of an attorney, it’s best to discuss it through with a bankruptcy lawyer first.

The lawyer should advise you on the cons and pros of filing for bankruptcy and whether you’ll be losing your funds in the process or not. The attorney will also help you know if you qualify for Chapter 7 bankruptcy discharge or you should opt for Chapter 13 bankruptcy.

Debt relief options that’ll help you get out of debt.

Bankruptcy is just one of the multiple debt relief options. If you don’t want to file for either Chapter 7 or Chapter 13 bankruptcy and you want to get debt relief, then read below. The list here is not an exhaustive one, but they provide some effective and common debt relief options

· Debt Management Companies— A debt management company has the role of negotiating with creditors to come up with a reduced monthly payment or debt amount. The debt management company receives payments from the debtor and pays the creditors based on an agreed sum. However, it’s not compulsory that the creditors work with a debt management company. They can also continue to request payments even after an agreement with the debt management company.  You could look at a company like Debt Reduction Services, and it may help to research Debt Reduction Services reviews

· Debt Consolidation Loans—This debt relief option involves borrowing money to clear your debts so that you can consolidate your debt into a single monthly payment. However, most creditors will ask for collateral before issuing a debt consolidation loan. As such, you may lose your asset in the process.

· Retirement or Savings—it is quite common to see individuals use their savings or retirement to pay the debt. The risk attached to opting for this debt relief method is that you may lose your home if you default on payments.

· Home Equity Loans—with this option, you’ll use your home equity to pay debts. However, you may lose your home if you default on paying.

· Debt Settlement—this method involves brokering an agreement with your creditors to accept less than you owe. This debt relief option can save the debtor a lot of money; as such, it should be top on the priority list. Forgiven debts must be reported on your tax return as income, which will raise your tax payment. For more knowledge about debt settlement, read this Ultimate Guide to Debt Settlement. 

Things to Consider

Ignoring debts that seem difficult to pay shouldn’t be an option. Creditors are legally empowered to take several steps to recover their money. Some of those steps include debt collection lawsuits, wage garnishments, levies, repossessions, and foreclosures. The debt collection laws in your state and the type of debt will determine the action the creditor will take. 

Irrespective of the debt relief option you opt for, they all have their pros and cons. As such, you must first carry out a detailed analysis of each option to determine the appropriate one for you. However, you can negotiate with your creditors for reduced settlements or lower payments if you only have few debts.

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