If you have debts that cannot be handled and bankruptcy may seem like the only option available, make sure to consult a bankruptcy lawyer. Do your health in assessing your case and let you know about the possible options in your case so that you can avoid filing bankruptcy? Press The Restart Button to know more.
Make sure to consider these things before filing for bankruptcy.
- Take a comprehensive look at your debts.
Make sure to assess your secure debts like all mortgages and car loans. It is necessary to check the repayment every month as well as the interest rate. Jot down the fixed sources of expenditure like power, phone bills, insurance, food supplies, etc. Prepare the total amount of money spent on these things. Along with that, check your credit card debt. You can get your credit card statements and calculate the amount owed to each card and their interest rates. Ultimately, note that all your dips that can be deemed optional are made impulsively. This can include money spent on entertainment, gym memberships, dinners, etc.
- Avoid unnecessary expenditures.
Now that you know the flow of money, try to plan your finances more wisely. You can make a budget for your expenses and not down all your savings after eliminating the optional expenditures. The optional or unnecessary expenses help in saving a lot of money. Other than that, make sure to control your ideas about spending money on things you do not need. By saving money on such matters, you can stack them to repay your debts.
You can seek the help and support of your family members and significant others. Bankruptcy and financial problems can be stress-inducing. You may not be able to deal with it on your own. Make sure to let your family know about the problem and allow them to assist you in the process so that you can decide on the expenses together and control all the unnecessary purchases.
- Sell your assets which can help in the payment of your debt.
Generally, people who decide to file bankruptcy may not have equity. However, other types of assets, like antique objects and clothes, can be sold off to make money. Make sure to check all your collections and decide the things that can be sold to make money. You can use those objects for selling on thrift sites and other places. The proceeds can be used for the repayment of your debt.