Steps to Take Before Bankruptcy
If you are drowning in debt and considering declaring bankruptcy to get rid of it, reconsider your decision because other choices may be available. Before looking into filing for bankruptcy, make an effort to better your situation. Whatever you decide, consider these actions outlined by the bankruptcy services listed below to determine if you may avoid filing for bankruptcy.
Detail Out All Your Debts
Look at your secured debts first, including your house and auto loan (s). How much is the monthly repayment? What are the rates of interest?
Next, list all the fixed costs, such as electricity, phone service, insurance, food, etc. How much would these costs cost in total?
Examine your credit card debts as you proceed with this approach. Take out all your credit card statements, and list your outstanding balances and each card’s interest rate.
Eliminate the Unnecessary Expenses
Now you should have a better idea of where your money goes. Make a diet plan for your cash; In your Cash Diet Plan, list down all your savings from eliminating the optional expenses. You will be surprised at how much money you can save by carefully controlling your expenses. The money you save can be used to pay down your debts.
Get Your Family Involved and Work as a Team
Avoid doing it alone because you might need help to make sound decisions and feel out of control. Instead, gather your family, explain your financial situation to them, and ask them to cooperate to manage household spending and cut unnecessary costs.
Cash Out With Your Assets
You are better off if you have equity since you can refinance or obtain a secured loan to pay off your debts. You might not have any equity if you are already considering bankruptcy as a debt relief option. Equity is not the only asset; many people need to pay attention to items with monetary value but no sentimental significance. Consider collecting vintage clothing or antiques.
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