Avoid Filing For Bankruptcy

A person should do everything possible to evaluate other options besides bankruptcy. Many times people contemplate bankruptcy because of a job loss, coupled with the inability to immediately find alternative employment. This is especially true in rural communities where it can be much more difficult to obtain similar employment with similar earnings. Job loss translates into less income and makes it more difficult to service existing fixed debt obligations.
 
Whether you are seeking bankruptcy relief due to job loss or some other reason, you will need to perform a cash-flow analysis. Simply-stated, this is an analysis of your net income minus all of your fixed and variable expenses. Our firm can help you do this as this information ultimately transfers to the bankruptcy schedules, also completed by our firm. If there is simply no way for you to meet your current monthly obligations, then a bankruptcy may be in your best interest.
 
The total amount of your debt is relevant in other ways. If you owe a relatively small amount of debt and you have a foreseeable earning stream, you should consider all alternatives to help you in avoiding bankruptcy. 

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Steps To Avoid Bankruptcy

Evaluate Your Credit

Evaluating your credit is an important process that involves more than just learning your FICO score. Your credit represents a major part of your overall financial condition, and is comprised of elements such as employment history and current income.

Downsize

Tips for downsizing to help avoid bankruptcy include reducing your housing expense, eliminating a car payment, selling unused toys, creating a budget and taking on a second job. The benefits of downsizing to avoid filing for bankruptcy are numerous.

What Will I Lose?

Everything other than that listed in the exemption statutes is the property of your creditors who share in the property compiled within the bankruptcy estate. Simultaneously with the filing of a bankruptcy all of your non-exempt property is no longer yours.

Pay Down Debt

Debt consolidation involves methods of combining multiple payments, loans, or debts owed into one payment. This can make debt more manageable for those who are juggling several debts simultaneously. 

Negotiate With Creditors

There are several tactics for negotiating with creditors that you can employ including how to settle, what to request, and many other frequently asked questions on mortgages, student loans and credit card debt.