What to do if You’re Facing Bankruptcy

If you are considering filing for bankruptcy, chances are you have tried hard to get out of debt. You might have started working longer hours, you might have spent less money on yourself, and you might have looked for help. 

The good news is that there is legal help out there for you. This legal help can ensure you stay protected and have enough money to live on. So what should you do if you’re facing bankruptcy? This article will help you to understand what your next step should be. 

Try to Avoid Filing for Bankruptcy

One of the things you can do is to cut your spending further. If you still pay for a few TV subscriptions and you still eat a takeout now and again you can make changes. There might also be other changes you can make so you’re not living beyond your means. 

Put a budget together and work out how and where you can make savings. Now it’s time to cut up your credit cards. Any bankruptcy attorney that you choose to hire will ask you to limit your spending this way. 

– Make changes to your lifestyle

Some of the changes you could consider making are

• Moving to a smaller apartment or house
• Selling your motorcycle or second car
• Driving a less expensive car 
• Avoid going on vacation this year 

You might also need to limit or cut out the following activities 

• Using your cell phone
• Magazine subscriptions
• Smoking/vaping 
• Eating out 
• Visiting the spa or gym 
• Or anything else that is considered a luxury

Using Debt Consolidation to Help you

Many people opt for debt consolidation. This is because your debts are all placed together and you make one monthly payment. However, this is not always a good idea as many people a lot of their leftover money. This is why debt consolidation should only be used as a temporary option. 

Boosting your Income

If you’ve minimized your expenditures and you’re still short of cash you might have to boost your income. You could take on another job or ask someone you live with to help. 

Many people work two or three jobs so that they can make ends meet. While this might seem like hard work, after a while you will get used to it. Just think, an extra $200-$400 each month could make a huge difference. 

Making a Permanent Change

It’s so easy to get stuck into a specific way of spending money. We become accustomed to paying the same bills and spending the same on dining out, for example. However, if you really want to help yourself you should make a permanent change. You can do this by saving money and using it as an emergency fund. This fund could be ideal if your car needs to be repaired or you need to take time off work because you’re ill. 

If you’re facing bankruptcy use the above tips as they could make a real difference.