August 6, 2018 By:
The federal bankruptcy laws are in place for good reason—so that you can get a fresh start when the circumstances of life cause you to incur unmanageable debt. But the bankruptcy process is rarely a simple or stress-free one. If you can avoid filing for bankruptcy, you’ll often be better off in the long run. Here are some simple strategies for minimizing the likelihood of filing for bankruptcy.
It’s one of the most common causes of a personal bankruptcy filing—you experience health issues and the bills mount pretty quickly. Though medical bills are unsecured and can be discharged in a Chapter 7 bankruptcy proceeding, you can avoid the stress and mental anguish that come from collection calls and letters for bills you can’t pay. If your employer does not offer health insurance as a benefit, you can obtain coverage through the Affordable Care Act. Health insurance coverage should be near the top of your list of things to pay, if your income is limited. Though you could succeed in having some expenses written off by providers, you could also end up with monumental bills that can saddle you for years.
Far too often, people pay other bills before making their car payments. Unfortunately, if your car gets repossessed, you may not have any way to get to work, and you’ll only make your situation worse.
It’s a common misperception that borrowing a bit of money will help you climb out of your financial hole. Unfortunately, it almost never works, unless the reason you got behind was that you lost your job and you are now employed with good pay. If you couldn’t meet your obligations before, it will be even more difficult with another monthly payment.
Far too often, when you’re experiencing financial challenges, you borrow out of a short-term sense of desperation. Don’t ever take out a payday or title loan—it’s just throwing money away for a bit of short-term relief.
I offer a free initial consultation to all potential bankruptcy clients. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.