Beginning Of Financial Recovery – Bankruptcy Attorney

Chapter 7 bankruptcy is something that millions of Americans have to deal with every year. One of the biggest questions that they face before moving ahead is whether they should consult a chapter 7 bankruptcy attorney.

The first and easiest way to prevent yourself from facing bankruptcy is to never buy things you can’t afford. Bankruptcy happens when you owe more than you’re able to pay and what you do own is not enough to satisfy the debt you have.

Stop Charging This might be one of the hardest things to do, but you should destroy all of your credit cards. Many people try to tell themselves that they need at least one for emergencies. If you can’t bear to be without them, keep one and have the limit lowered to something very small that you could easily pay off in a few weeks of saving.

People thought that that just because they were able to squeak out the payments in the beginning of the loan, they would be ok. But if one negative thing changes in your financial picture, you then cannot afford what you bought, and the bank will take it back. If you have a few things that you cannot afford, and the debt on them is more than you’re worth, you’re going to be faced with bankruptcy.

The bottom line is, you don’t want your debt payments to be anymore than fifty percent of your income. That may mean buying a smaller home or a less expensive car, but it’s better than losing the house or car in the end and starting out with nothing again.

This means you might have to make some sacrifices and delay some forms of gratification. It doesn’t mean that you can’t reward yourself. Look for free or inexpensive ways to give yourself motivation as you stick to your budget. Whether it be taking a few hours to yourself to do whatever it is you like (cash-free, of course) or cooking yourself your favorite meal. Rewarding yourself can help the process move along faster.

Then they end up defaulting on the loan, which costs more. Something so small as missing a few payments could make you end up in bankruptcy. Do whatever you have to do to remember to make your payments on time. Weather its marking your calendar or having the payments automatically drafted from your account; it will be worth the effort.

Listen to your bankruptcy attorney, they have more experience. They have witnessed the rich fall into poverty and families lose everything. A skilled bankruptcy attorney will not only try to dismiss debts for you and protect your assets, but will help you reorganize your financial priorities so you can start your life over.

Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit

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