The debts have piled up. The creditors are calling, and you're wondering where you'll get the money to pay for your child's school activities. You're in a desperate situation, and now you need a plan of action to stave off bankruptcy. However, sometimes, bankruptcy may be the best or only solution.
You must be realistic when considering filing for bankruptcy, but there are steps that you can take in preparation for the move. Admittedly, it won't be easy. Your pride may be hurt, but you are taking the first steps toward a potential resolution.
Preparing and adjusting
What should you do? You've already taken the first step in making the decision to file for bankruptcy, now you need a definitive plan along with the advice of an experienced bankruptcy attorney. Here are some of the steps you can take.
- Stop using credit cards: You've already decided you're going to file for bankruptcy. By creating more credit card debt, you will be creating more difficulty for yourself.
- Establish a budget by determining what bills must be paid: If you are planning on keeping the house or your car, the first priority may be mortgage or rent, followed by a car loan. Then determine what you are paying for utilities, and, finally, other expenses such as school-related expenses for your children or ongoing medical. These are expenses that you will have after bankruptcy; practicing living within your means will put you on the right path for the future.
- Adjust your lifestyle and live on a low budget by cutting out unnecessary expenses: Do you need that landline if you have a cellphone? Do you need cable or satellite television? Have you considered switching to a streaming service that may be cheaper? And how often do you really need to eat at restaurants? Find out areas where you can cut back. When you make the choice to tighten your financial belt, you are only helping yourself.
If you are worried about potential roadblocks that may make bankruptcy difficult, talk to an attorney. A skilled bankruptcy attorney will often be able to offer ideas or solutions. Talk to the attorney about other options. The attorney should be able to discuss the advantages and drawbacks of each option and advise you one what is the best options for you.
There is hope. Filing for a bankruptcy could lead to a new financial beginning for you.