Fong Law Group

Is Bankruptcy Considered Financial Hardship?

There is no doubt that bankruptcy can be difficult for people. No one wants to declare being bankrupt unless and until they have no way out of the debts. So, if you are asking whether or not bankruptcy is considered as a financial hardship, then the answer is - definitely, YES! A bankruptcy can cause a very lasting impact on the creditworthiness and life as well, to ensure that you are rectifying the situation and getting back to normal, you have to restructure your debts and cut back on the costs. To do that you will need the best bankruptcy attorneys by your side.

We, at Fong Law Group, can ensure that you are getting the best legal help to go through the bankruptcy procedure and all the legal proceedings and meetings efficiently. We offer the best legal services related to bankruptcy in Monterey Park, California and in the surrounding areas.

What is financial hardship?

Financial hardship means when you find it difficult to repay your debts and loans. When you are in extreme financial hardship that you couldn't pay off your bills and debts or the loans, you apply for bankruptcy. Financial hardships can be considered when you are:

• Unable to pay of your bills
• Unable to repay the debts that you have
• Unable to pay off your loans to the creditors

Hence, a bankruptcy is considered a financial hardship. Declaring bankruptcy is considered as the last resort to get out of the financial hardships that you are facing. Many are relieved when they finally take the leap, and decide to file bankruptcy. It means the creditors stop calling, you can finally answer your phone again. It means a new start, and less stress worrying how you will be able to pay all your bills. But the main question is when can you file the bankruptcy?

 

When to declare bankruptcy?

Now that you know what financial hardship is, it is time for you to know when you can declare bankruptcy to start afresh. There are times when you can hit the rock bottom. Your liabilities i.e. the debts and loans can exceed your assets or income. This can be the worst thing and you need to get out of this situation immediately. The best way to get out of this situation is by filing bankruptcy.There can be different reasons to file bankruptcy. If your creditors are filing lawsuit against you or you are not able to pay off the debts properly, consulting with a bankruptcy lawyer is the best way to get out of this. Understanding bankruptcy and when to file it or how to file it can be quite difficult at times.

Moreover bankruptcy and financial hardship has a direct connection that an experienced lawyer can help you to know in a better way. So, look for the best lawyers or attorney in your area. Fong Law Group is here to help you in such situations when you are confused about bankruptcy. What to do? When to file bankruptcy? How to file bankruptcy? You can get all the answers straight away from the best lawyers of Monterey Park California

Call Fong Law Group at (626) 289-8299 for a FREE consultation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

What Does the Bankruptcy Process Involve?

There a lot of steps involved in the process of filing a bankruptcy. This is a legal proceeding that involves a business or a person who is not able to repay their loans or any debts. If you have decided to go ahead and file bankruptcy, then you might find it quite hard without the help of legal experts. It can be quite intimidating if you don't have the help from an experienced law firm. There are mainly two types of bankruptcy filings – a Chapter 7 and a Chapter 13. Both may take same time for filing but the process differs.

To make things easier and better for you, we at Fong Law Group can help you with the bankruptcy process. We are located in Monterey Park, California and its surrounding areas. Contact us, if you have any questions or queries related to the filing process.

 

Process of filing bankruptcy

So, what can a bankruptcy process involve? There are different steps that are involved in this process and these are:

Counseling before bankruptcy

Before the bankruptcy filing, you have to go through counseling where a credit counselor approved by the Government will discuss the possibility of the bankruptcy filing in the next 6 months. Here, you have to let them know about your financial situations, options for bankruptcy and starting a new budget.

Filing the petition

So, the next step will be will be to file the petition and this is one of the most complicated process. In this process, you have to provide all the documents that show your outstanding debts and categorize them in a proper form using a particular format. We, Fong Law Group, will create these documents for you after consulting with you regarding your financial situation and assessing your financial documents.

Automatic stay

The next step is called an Automatic Stay, and this will come into play as soon as you file the petition. With this Automatic Stay, it will stop the creditors from collecting the money from you. The creditors will not be able to call you or ask for the money, repossess your car or your house etc. But the creditors can go to the court for lifting the automatic stay order.

Sending the papers to trustee

You will have to meet the creditors after filing the petition but before that, you have to send all the documents to the creditors at least 5 days before the meeting. These documents will help to prove your statement about bankruptcy. Hence, the important papers or documents that you have to send are - current tax return documents, paychecks and your bank statements.

Meeting with creditors

The bankruptcy trustee will arrange a meeting of the creditors and you will have to attend it. Here, your identity will be verified and you will be asked questions regarding your finances and bankruptcy petition that you have filed.

Do you want to file bankruptcy following the exact legal proceeding smoothly and effectively? You need the best one law firm in Monterey Park California and surrounding areas.

Call Fong Law Group at (626) 289-8299 for a FREE consultatin, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Which Business Debts Are Discharged in Chapter 7 Bankruptcy?

People who have debts can declare bankruptcy and get a new beginning through liquidation or reorganization. Specific debts can be discharged by the bankruptcy proceedings in both cases. The debt collector can no longer speak up against the borrower, like trying to collect payment or seizing any collateral, once the loan has been expelled. However, not all loans can be discharged, and some are exceptionally hard to discharge.

Is It Possible for a c to Be Denied by the Courts?

It's possible. The majority of personal debtors are discharged under Chapter 7. The entire bankruptcy situation may be rejected if the court determines that individual hidden money or even other resources, fraudulently acquired assets that must have been used to repay loans, or otherwise violated the rules.

Business Debt and Bankruptcy

You can release the following types of debts in bankruptcy Chapter 7:

• bills from credit cards
• a few court rulings
• medical expenses
• a sole proprietor's unprotected debts
• obligations arising from sole proprietorship leases and agreements

Debts that are secured are handled differently. If you don't pay your bill, the creditor can seize the collateral used to secure the loan, even though you declare bankruptcy.

Personal Bankruptcy and Business

In Chapter 7 bankruptcy, some forms of debt are not dischargeable.

Non-dischargeable debts include:

• back child benefit and alimony
• court-ordered fines, punishments, and restitution
• assumptive fraud
• student loans only if paying back them is a severe hardship
• debt incurred as a result of potential fraud

A bankruptcy Chapter 7 may stay on the credit reports for ten years, while a Chapter 13 bankruptcy will stay on the credit file for seven years. This can make borrowing money at some point, like for a home loan or car loan, or obtaining a credit card, more costly or even impossible. It will have an influence on insurance rates. You can contact Fong Law Firm if you residing near Monterey Park California and surrounding areas.

So, before filing bankruptcy, you should look into other alternatives for debt relief. Debt relief usually entails negotiating with the lenders to make the debts more tolerable, like lowering interest rates, canceling a part of the debt, or extending the repayment period.

The Impact of Bankruptcy on Investors

No one expects a company to go bankrupt when they invest in it, whether through equities or debt equipment. Once you venture beyond the risk-free domain of government-issued equities, you understand this additional risk.

When a company files for bankruptcy, its equities typically continue to trade, albeit at very low prices.

Shareholders are even further down the ladder during Chapter 7. Usually, a business's stock becomes valueless during the Chapter 7 trial, and shareholders lose all their money. You may even get a fraction of the full price of a bond unless you hold one. What you'll get is determined by the number of investments available for allocation.

Secured lenders have a better chance of recovering their preliminary investments' value. Before receiving any compensation, unprotected creditors should wait until protected creditors have been properly compensated. Stockholders generally get very little, if anything at all.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Can I Sue Someone Who Has Filed for Bankruptcy?

You can register a lawsuit if someone breaks a deal or harms you in a certain way, and you want money to compensate you for your loss. However, if the person you like to sue declares bankruptcy, you may be out of luck. The sort of problem and the time of the incident will determine whether you can file a lawsuit.

Suing Someone Who Claims Bankruptcy

The automatic stay imposed by bankruptcy prevents most lawsuits from being filed after the bankruptcy is lodged. Private loans, credit card bills, hospital expenses, utility bills, and accidental injury claims are all examples of loans for which you can't file a lawsuit.

There are some circumstances in which a lawsuit can survive. For example, declaring bankruptcy will not prevent a criminal case from proceeding. The lawsuit of bankruptcy has no bearing on divorce or custody hearings. If the user declaring bankruptcy was intoxicated at the time of accident or injury, the legal case against them can be continued. In addition, lawsuits arising from debts incurred after a bankruptcy filing may be pursued. You can file a case against the borrower if they cause accidents one month after declaring bankruptcy and harm the car.

The court's verdict on whether or not to grant the request is contingent on the facts. After the court announces an automatic stay, lenders can sometimes acquire a debt.

Even after a judge announces an automatic stay, the borrower may be required to pay the debt. The creditor, except for fraud cases, can get an exemption. The creditor must show that the automatic stay is detrimental to their legitimate dispute, legal agreements, or property. You can visit Fong Law Firm if you are residing near Monterey Park California and surrounding areas.

Cases When a Bankruptcy Filing Will Not Discharge

Can you collect money from someone in the following situations?

Fraud: If the debtor committed fraud and incurred debt, the debt cannot be dismissed by declaring bankruptcy.

Personal Injury Situations: If the borrower was driving under the influence and caused the accident, bankruptcy will not be able to discharge the mortgage. This sort of lawsuit can be filed in a bankruptcy trial to decide whether the offender was intoxicated.

Debt After Bankruptcy: This debt cannot be discharged if the borrower applied for a mortgage within 3 months of declaring bankruptcy and failed to repay it.

Bankruptcy and Suing Someone

A complaint will be lodged on you if the mortgage is non-dischargeable and the lender is permitted to sue. This is a printed document that explains why a lender or other party suing you must be allowed a bankruptcy proceeding exemption.

The document is delivered to the address listed on the bankruptcy complaint. A summons will be served on you, detailing how soon you must react to the concerns and whether you must attend court. The bankruptcy court judge can issue the state lawsuit to be transferred to federal court after it is filed.

The sort of case or how much the lawsuit has advanced will determine whether the court commands the case to be moved.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Should I File for Bankruptcy FAQ

Bankruptcy can give you relief from a financial crisis. But you cannot decide on filing bankruptcy without adequate information. Before filing bankruptcy in California, you might want to know the options, discharges, and impact on your financial life. In the following, we will address all your queries.

Should I File Under Chapter 7 or Chapter 13?

There will be some specific requirements for both these chapters. You can file bankruptcy under Chapter 7 when your monthly expenses are more than your monthly income. You can consider Chapter 7 if you earn less than the median income. Also, it can be a suitable choice when you do not have a lot of things to keep. Chapter 7 might discharge most of your debts. But you cannot expect that it will eliminate all your debts. Besides, you can file bankruptcy under Chapter 13 if your monthly expenses are more than your monthly income. However, Chapter 13 involves creating a repayment plan. You will have to repay some loans within sixty months.

When Can a Judge Dismiss Bankruptcy Petitions?

When your monthly income is more than your monthly expenses, a judge can dismiss your Chapter 7 bankruptcy petition. However, you can consider Chapter 13 bankruptcy in that condition. You can hire experienced lawyers from Fong Law Group to know your current status. Experienced legal professionals can offer you the best help based on your financial condition. The Fong Law Group provides legal services to Monterey Park California, and surrounding areas.

 Will Creditors Stop Calling After Filing Bankruptcy?

Yes, your creditors will stop calling you once you file bankruptcy. They will have to follow the legal process. Hence, they will not harass you anymore. Also, it will stop debt collection lawsuits, foreclosures, and utility shutoffs. But it might be temporary, and you can talk to your lawyer to find a better solution.

Can All The Collection Efforts Stop After Filing Bankruptcy?

Yes, the creditors will have to stop all the collection efforts. Once you file bankruptcy, the bankruptcy court will notify your listed creditors. It will not take more than a week. Hence, your creditors will stop calling you within a week. However, if they do not stop bothering you, you can reach out to the lawyers of Fong Law Group. The experienced lawyers will act immediately to end such actions.

 Will Bankruptcy Impact My Credit Report?

Yes, it will impact your credit report. But it will not remain on your credit report forever. The maximum period is ten years. However, you can improve your credit score within this period by avoiding late payments. Also, you can check your credit report to find any errors, and you can talk to the credit bureau to fix them. Yes, you can gradually improve your credit score. You can win the trust of lenders again as well.

Do you want more help? Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Get Rid of Lawsuit Judgments?

Judgements are court decrees that state you owe the creditors money. If you do not pay the bills on time, the creditors may seek to take your private possessions or take your salary to settle the debt. You can contact Fong Law Group if you live in Monterey Park California and surrounding areas to go over your options to prevent or stop a judgement.

Is It Possible to File for Bankruptcy If You Have Judgments?

Because a judgment may have such a negative impact on the credit score, many individuals question if there is a method to get it cleared up. Many professionals would advise you to file for lawsuits, but does it clear all of your debts?

You will be free of all obligations or debts owed to creditors if you file for bankruptcy. However, if a judgement has been entered and a mortgage has been charged, bankruptcy would not be able to eliminate the lien.

You can get some claims on the property dismissed by asking the lawyer to file a petition with the court. However, it is preferable to cope with bankruptcy lawsuits before they become a lien on the property.

Most Bankruptcy Lawsuits will be Discharged If You File for Bankruptcy

Unpaid debts account for the most court judgments against bankruptcy creditors. The lender can sue you for the violation if you don't repay the personal loans, hospital expenses, or other secured loans. If the lender gets a judgment, they have the option of garnishing your earnings or seizing your property to pay the debt, depending on what type of debt it is.

Fortunately, declaring bankruptcy can halt the seizure and eliminate the debt repayment obligations. If a dispute is still ongoing, an automatic stay imposed by the bankruptcy may prohibit it from proceeding. Even though the case ended in a judgment, if the debt is eligible for dismissal, bankruptcy will remove the liability. However, if the judgment is for a non-dischargeable liability, bankruptcy may not be able to discharge it.

Bankruptcy Judgements

If a lender has issued you with bankruptcy lawsuits but it hasn't come to judgement yet, contact a bankruptcy lawyer as soon as possible. Bankruptcy may be able to stop the lawsuit and immediately eliminate the loan, sparing you effort and money.

Is this a Non dischargeable Bankruptcy Judgment?

Start by evaluating whether the liability is Non dischargeable while considering if bankruptcy will erase a judgment. The following are examples of non-dischargeable debts:

• Loans for students (with exceptions)
• Obligations for child benefit or spousal assistance
• Fines, royalties, court expenses, and other payments payable to government agencies
• Driving while inebriated results in mortality

Don't think you're out of the woods if the decision isn't in the Non dischargeable group. Other forms of debts, like liabilities tied to fraud, may be non-dischargeable when the collector objects.

Is it Possible to Prevent a Judgment Levy in Bankruptcy?

If the borrower's claim is still linked to the assets, like your home, getting a bankruptcy clearance will provide little relief. If the mortgage is still in place, the lender will have the option of selling the property once the bankruptcy process is completed or waiting till you sell it to claim its portion.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

While the bulk of taxes are unavoidable in bankruptcy, some are. Fong Law Group can review your situation to see whether the tax bill can be forgiven. Though complicated, applying for Chapter 7 bankruptcy and determining if your obligations are dischargeable may help you get rid of some unpaid taxes.

Bankruptcy and IRS

There is a distinction between tax debt and liens. Tax debt is money owed to the state or the IRS. A lienholder is a judicial judgment that is lodged against the assets to fulfill a tax debt owed to the state and federal government. If you file for bankruptcy and complete all of the requirements, earlier tax levies will not be removed.

The amount will be dismissed, but not erased, from your duty to pay it back. So, the IRS can't seize your assets or bank accounts.

But, if you declared bankruptcy before a lien was issued, the lien may stay on the land. If you wish to sell the home in the future, you'll need to settle the lien first.

Automatic Stay

A device known as the automatic stay halts most legal processes and prevents lenders from pursuing collection methods once you apply for bankruptcy. It ensures lenders can't charge you, seize your wages, charge you, or contact you to recover the money you owe. The IRS is also subject to the auto-stay. The IRS can't issue you collecting debt notifications, garnish the income or savings balance, or even credit the tax refund when an effective system is in effect.

Debt Accrued after Declaring Bankruptcy is Not Subject to the Automatic Stay

The auto-stay protects you against creditors who are attempting to recover the debt that you accrued before filing bankruptcy. The automatic stay doesn't preclude creditors from attempting to collect the debt you acquired after filing for bankruptcy, known as "post-petition debt." The automatic stay will not prohibit the IRS from seeking to recover if you acquired tax liability after declaring Chapter 7 or 13 bankruptcies.

What Occurs to a Tax Liability That Isn't Dischargeable?

If you reside in Monterey Park California and surrounding areas, contact Fong Law Group for more information on the case.

If you declare bankruptcy, your tax liabilities are addressed differently.

• Chapter 7 bankruptcy. Excluding the obligatory stay, bankruptcy proceedings have little impact on non-dischargeable tax debts. The bankruptcy matter will be closed by the court clerk when the bankruptcy judge approves the dismissal. The IRS would be allowed to continue collection operations if the bankruptcy filing does not dismiss the IRS tax liability.
• Chapter 13 bankruptcy. You may employ a Chapter 13 repayment plan to deal with non-dischargeable debt. You'll suggest a 3- to 5 year payment plan for the IRS obligation (together with other bills). Your previous unpaid IRS obligation will still be discharged, and the non-dischargeable bill will be fully paid.

Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Five Things You Should Know Before Filing Bankruptcy

When you are undergoing financial stress, it's natural to do what it takes for alleviating the anxiety and pressure of the situation. Right from rent to mortgage to other regular payments, you can feel dreaded to release yourself from the debt.

On average, around 1.2 million Americans are compelled to file bankruptcy for various reasons like medical expenses, marital issues, and severe poverty. So before you consider filing bankruptcy, here goes the top 5 things to consider.

1. Bankruptcy can have an impact on the outcome

It's highly likely that you will either file Chapter 13 or Chapter 7 bankruptcy. And even though there are other kinds of bankruptcy, you may not be eligible to benefit from those.

In Chapter 7 of Bankruptcy, all your assets will be liquidated while the debts will be discharged. This implies that when the bankruptcy will come to an end, you are likely to be left with no debts unless you owned any assets that weren't eligible for discharging.

On the flip side, in Chapter 13, the debts will be reorganized in such a way that it becomes a pay plan. As a result, you are not compelled to liquidate the assets.

2. Bankruptcy can have a positive effect on the credit

Even though you are worried about the credit ranking delay that may be brought about by filing bankruptcy, it will remain in the records for some time. After that, you can actually improve your credit score. As the dischargeable debts get cancelled, you can move forward with a clean financial slate and start rebuilding the credit profile positively.

3. Getting an automated stay against creditors

When you file for bankruptcy, the court will surely issue a sty order against all debt collecting activities. Even though your debt is not suspended, it will definitely delay the proceedings until the case comes to an end or the stay has been lifted.

4. Bankruptcy is a safe and easy option

Contrary to popular belief, a bankruptcy is a relatively easier and fast process to get you rid of the unworthy financial situation. In most cases, you are likely to be awarded an automatic discharge within 9 months. Moreover, when you don't have any non-exempt assets or extra income, bankruptcy filing is surely the most cost-effective option.

5. You can keep a part of your property

When you are filing bankruptcy, you will be able to keep a small amount of the property as an exemption. These are assets that you can shield from liquidation. In most cases, exempt properties include pension, household belongings, motor vehicles, furnishing and other things as per your individual situation.

It's worth noting that these are also the primary causes why you should consider working closely with a bankruptcy lawyer. He is proficient and skillful enough to support you through the challenges and make sure that the case goes as it has been planned. If you are facing such an undesirable situation, contact us today and settle it with the best backup you can think of.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Will Bankruptcy Eliminate Enough of Your Debt

Bankruptcy is a viable lifeline for those who are immersing in debt. Consumers often file petitions for releasing them from debt. And fortunately, in most cases, the petition is granted. But the real concern is that whether filing bankruptcy can relieve the situation.

Understanding bankruptcy

Bankruptcy refers to a court proceeding where the jury and the court trustee will examine the situation, concerning the assets along with the liabilities of people and partnerships with a debt that have become too overwhelming to be repaid.

Thankfully, bankruptcy laws were drafted to offer a second opportunity to people so that they can start over once again after facing a complete collapse of funds. No matter whether the bankruptcy and debt are results of poor decisions or misfortune, lawmakers can consider it a second chance which is vital for a fallback in this capitalist economy. If you are still hesitant about this option being able to eliminate debt then you can consider giving yourself a second chance.

Can bankruptcy eliminate debt?

Well, bankruptcy may not be able to eliminate all of the debt. For instance, non-dischargeable debts are so essential that they might not be discharged when you file bankruptcy. When all your debts are falling into this category, it may not be suitable for you to plea for bankruptcy.

These may include domestic financial support such as funds for children and alimony, debts incurred from false pretenses or fraud, priority tax debts. Other non-dischargeable debts include obligations stemming from personal injury caused by bad decisions like drunk driving. It may not be suited for student loans also unless you are able to prove that the undue hardship exception is applicable in your case.

In some cases, filing for Chapter 13 bankruptcy can offer an affordable means of reorganizing and repaying non-dischargeable debts by following a repayment plan of 3 to 5 years. There is a maximum debt cap with respect to Chapter 13 bankruptcy.

When to consider filing for bankruptcy?

Before you file for bankruptcy, it's important to educate yourself on how it works. It comprises a thorough process that all businesses and individuals should be ready to follow. When you are facing severe debt issues, filing for bankruptcy can be a strong way of remedying the situation.

This is because it can stop most of the fund-collecting actions such as wage garnishment, telephone calls, and even lawsuits in some cases. It can rule out enough of your debt including medical bills, credit card balance, personal loans, and a lot more.

Conclusion

Bankruptcy allows people in debt to wipe off certain monetary obligations and think of a fresh start. The two primary variants of bankruptcy lawsuits, Chapter 13 and Chapter 7 offer their own share of benefits in debt management. Even though it may not be able to relieve you from all kinds of debt, when you have a reputed and knowledgeable lawyer by your side, he can prevent a creditor from repossessing the property that cannot afford any more along with tax debts and debt stemming from fraud cases. This means, if you are in such a merciless situation, it's imperative to have a lawyer help you through the process.

Call Fong Law Group at (626) 289-8299 for a free consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.

Student Loan Programs: 4 Questions to Ask Before Refinancing Your Student Loan

Majority of student loan lenders offer some of the best loans you could find. The interest is usually fairly low, and the loans are pretty simple to get. To their credit, student loan lenders are some of the fairest in the country. 

Student Loan Lenders:

• Allow you to go into forbearance when your financial situation becomes unmanageable;
• They will work out fair payment plans with you; and 
• Their interest rates are manageable if you're not experiencing financial difficulty

Those student loans, on the other hand, will not go away no matter what. Even if you are unable to obtain a good job as a result of the education they provided, you must repay your student debts. They'll continue to accrue interest even if they're in forbearance. Student loan refinancing and debt consolidation organizations, on the other hand, are finally giving borrowers new hope.

By asking the appropriate questions, you may find the right student loan option for your debt consolidation. We have put together some questions you should ask when considering the right student loan program.

First and foremost, you should inquire as to what you would need to perform in order to be qualified for loan forgiveness. You can get some or all of your student debt forgiven if you work in specific industries, such as education, public service, or the military. Consult your agent to determine if a vocation you're interested in falls into one of these categories, and if so, you may be eligible for forgiveness. A government program is also available.

Do they accept payments on a biweekly basis? It's extremely uncommon that you'll come across a company that does not accept automatic bill payment. In addition, most lenders will give you a.25 percent interest rate reduction if you sign up for automated bill pay. However, you will not be able to make bi-weekly payments with everyone. Some companies will allow you set up automatic payments once a month and accept a check or money order at any time during the month. However, keep in mind the following:

1. Bi-weekly payments equal out to about 26 more payments a year,
2. You're paying the same amount of money, but making more frequent payments, so you pay less interest and you're shaving off years of repayment time

What are your financial goals in the long run? Before you sign up with a company, be sure you understand exactly what you'll be paying each month and for how long. You may decide that you don't want to pay off your student loan debt for another ten years, or that your payments are too large to manage due to upcoming personal commitments.

Remember that interest rates can add up quickly, so listen to your agent's advice but don't let him or her pick your answer for you. Before you choose the best option for you, make sure you consider all of your options for changing payment plans, refinancing, and pre-paying.

Are you able to refinance your home? If you've gained a better job or have a more manageable budget, many firms may allow you to refinance rather than consolidate. Refinancing your loans can save you over $11,000, so it's the best option for many people if they qualify.

If you find you are unable to refinance your loans due to job loss, an injury or any other reason, call Fong Law Group at (626) 289-8299 for a free consolidation. You can depend on Fong Law Group to provide clear information on bankruptcy law, each step you must complete, and how to best approach and manage life after bankruptcy.