You thought you were ready for everything after the divorce. However, you weren't expecting to lose your job. Now you're deeply in debt and you have no way to pay your bills. It looks like bankruptcy is the only way out. Before you decide to file for bankruptcy, here are a few things you'll need to know. Following the tips provided below will reduce the problems you may experience.
Do Discuss Options with Your Creditors
You get collection notices in the mail nearly every day. You hate to answer the phone, afraid that it's another bill collector. It's time to take some action and get rid of the stress. You've toyed with the thought of filing for bankruptcy, but are still unsure if that's the way to go. Here are the typical approaches you have of dealing with your debt and how they stack up to the bankruptcy option.
If you're struggling to stay afloat financially, there's a good chance that the idea of filing for chapter 7 bankruptcy has crossed your mind a time or two. And while chapter 7 bankruptcy can be a viable option for those in serious debt and financial trouble, it should also be seen as a last resort. Before you move forward with bankruptcy proceedings, then, make sure you've thoroughly explored these three alternatives that could provide you with the debt relief you need.
As many as 1 in every 3 people have a debt that is in collections. Once a debt reaches this point, a significant amount of time has had to pass with no payment on the account. This statistic alone shows that debt is a serious problem for many people. Unfortunately, there are a lot of misconceptions concerning debt that only perpetuate this problem. Learning to identify some of these misconceptions can keep you out of debt and on a path to healthier finances.
Rebuilding your finances after a bankruptcy can be difficult if you don't have any financial planning skills. Here is a simple step-by-step guide on how to start over again after you have filed for bankruptcy.
Start Living On Cash
One of the easiest ways to budget your monthly finances is to start using cash only to make purchases. This will allow you to see exactly where your money is being spent and if you don't have the cash to pay for something you can't buy it.