It’s Not Too Late!
The best way to avoid bankruptcy is with good money management, setting a budget and simply not spending more than you earn.
Of course, we realize you are probably reading this article because you are already at a point of desperation. Perhaps our title should be: How to Avoid Bankruptcy When I’m Already in Trouble?
You Can Avoid Bankruptcy with Several Steps
When you are delinquent on your accounts, it is usually due to negative cash flow. You are spending more than you are making. There are a few basic remedies:
- Make more money
- Reduce expenses
- Try a mix of both
For those who are able, avoiding bankruptcy may entail getting a second job as well as reducing expenses.
We know it’s not easy. Reducing expenses can be difficult. Start by separating your wants from your needs. It is easy to point out vices like cigarettes, alcohol, and gambling. The harder part is when you need to cancel your cable or internet.
Often you need to determine just how desperate your situation has become and decide whether something that once was a “need” is now simply a “want.” Losing cable and internet services is one thing, but what about your second vehicle? It may be a great convenience, but when push comes to shove can you and your spouse survive with just one vehicle?
Avoid Solutions that Dig Debt Deeper
Sometimes people avoid bankruptcy by taking a loan against their 401k or IRA. This seems like a good solution at the time, but this quick fix rarely works and often places people in an even more desperate situation.
The problem is simple math. You couldn’t make ends meet with your previous take home income. Even though the cash withdrawal provided immediate relief, the long-term effects are quite harmful. Once the withdrawal is made you need to pay back the loan which means that you get less money with each pay. This places you in a situation where you once again need to borrow against your retirement.
It is a vicious circle that you want to avoid.
Debt Settlement and Professional Debt Negotiation
While there is no escaping the hard choices that come with reducing expenses and good money management, there is a fast and effective way to help you get out of debt without filing bankruptcy.
This is debt negotiation, also called debt settlement.
The goal is to get you out of debt in a few years while paying back about half of what you owe. This is accomplished by having a professional negotiator acting on your behalf who eliminates the harassing calls and sets up a payment plan significantly lower than your regular monthly payments.
While your credit does take a hit at the beginning of the program, most people watch their credit rise back up by the end of the program to a point where they can get a house or a car at a decent interest rate.
Learn more on our Debt Negotiation page.
You can take charge of your financial future and get out of debt while avoiding bankruptcy. It just takes a little help from the legal professionals at Harold Shepley & Associates, LLC.
Find out what options are available for you. Call us today at 877-827-9006, or complete our easy to use Contact form. We’re ready to help.
