- Bankruptcy should be considered as a last resort; not as a first
- If you do decide to file make it a sound decision instead of an emotional one
- The ramifications of filing bankruptcy are more than just getting your debt cleared
- What bankruptcy won’t do for your finances
- What happens when you write a bad check to the Girl Scouts
about Bankruptcy is not something I enjoy doing. It is also something I
hope you are not going through. However I field calls and emails all
the time from people who feel like they are stuck and their only way out
is to file. To me Bankruptcy is like divorce, there are good people who
go through divorce but is isn’t something I suggest people go through.
with that being said, I’m not angry or disappointed in you do end us
filing for Bankruptcy protection. However I recommend filing only as a
last result, after you have tried everything else first. On today’s
lesson we cover three things to do before filing for bankruptcy.
your finances-When you are getting hounded by creditors and you don’t
know how you are going to come up with this months rent payment it can
be hard to sit down and spend some time with your finances. You might
feel like what’s the point and the stress will want to make you not
check your mailbox for fear of getting more bills. It is an emotional
situation and you can feel like you just want to give up. But put the
emotional energy into know your financial situation better. It will help
determine if you are truly bankrupt. I have found a lot of times that
bad financial situations are a result of just being disorganized. But
finding out what your income and expenses are each month might allow you
to see that there are other alternatives to bankruptcy.
pay your creditors-Hear me out on this one. I’m not saying stiff your
creditors when you have the money to pay them. But what I am saying is
to sit down and make sure that you take care of your four walls.
After that if you have money left over you can then pay your other
bills. But if you don’t have anymore left over then you can’t and don’t
pay anyone else. If you have a difficult time not paying your bills on
purpose well what do you think will happen when you file bankruptcy? But
by focusing on your needs first, you gain back some control of your
financial life. Once you regain control then you can go back and save
some money and settle later with your creditors. That way you can hold
you head high that you tried your best, your creditors got some money,
and you are able to have your life back.
- Ponder the ramifications of filing-Filing for Bankruptcy might seem like the easy thing to do in the short run. But there are long term
financial consequences to declaring bankruptcy. Other thing you need to
think about include what will I do for a car if I am giving up the car
in bankruptcy? What happens to my house? What assets will they seize. If
you can’t pay your bills due to no income, bankruptcy does not create
an income. How are you going to pay for your basic necessities? Also
student loans, which are a major cause of financial strain, are not
allowed to be bankrupt. How will you pay them? Don’t file for bankruptcy
out of emotion. Consider all your options and be at peace with your
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