For many people, going through bankruptcy may be one of the scariest scenarios they can think of. If you’re worried about the possibility of facing bankruptcy, first of all know that there is nothing to be ashamed of. Thousands of Americans go through some form of bankruptcy each year, which means you are far from alone. Secondly, there are ways on how to avoid bankruptcy. Keep on reading to learn how!
Tips on Avoiding Bankruptcy
Stick to Cash
If the source of most of your debt is unpaid credit card bills, it’s time to get rid of them. A credit card should serve as a convenience in your life, not be the cause of distress. The proper way to use a credit card is to pay of any balance you may have at the end of each month right away. If you have a penchant for spending and don’t have the means to pay it off right away, then you should let go of your credit card. This minimizes the temptation (and the possibility) of overspending and makes spending more economical. Without a credit card, you no longer need to worry about any interest you may have accrued.
Contact Your Creditors
The moment you realize you are falling behind on your credit card bills, you’ll want to let your creditors know right away. While the instinct may be to hide from them, talking to a creditor may actually help you negotiate payment deals that are better for you. They may also be open to waiving any late fees you may have accumulated.
Track Your Expenses
If you aren’t already, you should start tracking your expenses. You need to know how much money is coming in each month and how much money goes out. This allows you to make a budget based on your current lifestyle and also shows you places where you can cut back on spending. For instance, is 10% of your monthly income going towards purchasing your daily coffee? If this is the case, it might be more economical for you to purchase a coffee maker and brew your own coffee at home instead.
Downsize Your Living
One of the fastest and most effective ways to save money is to downsize a certain aspect or feature in your life. You can move to a smaller house, sell your current car for a more gas-friendly model, or change the type of loan you have for your home or car. While the change me be stark at first, it’s the easiest way you can save a huge chunk of honey.
Contact a Financial Lawyer
Sometimes, no matter how much you save and how well you budget, you just can’t seem to get rid of debt. For these kinds of cases, it’s best to work with a professional financial lawyer. A bankruptcy lawyer in Los Angeles can give you the best advice on how to get rid of debt and to avoid bankruptcy.
Talk to Us Today to Learn More
Debt and bankruptcy law is actually one of the most difficult and complex areas of law. This is why you need to find a reputable lawyer to work with. When it comes to debt management in LA, attorneys are good at helping you decide what the best course of action is and that your case gets through the process smoothly. As opposed to debt settlement companies, your attorney will still be there to help with post-bankruptcy discharge violations, like if a creditor attempts to collect a debt that was wiped out by the bankruptcy.
Aside from this, a good bankruptcy lawyer in Los Angeles will also be able to provide you with some useful tips that can help you take advantage of your fresh start and help rebuild credit after bankruptcy.
If you’re in need of help with debt management in Los Angeles contact The Law Office of R. Grace Rodriguez. We’ll help you through the intricacies of bankruptcy law in LA and find peace from your debt issues. Call us today and find out how we can help you manage your debts.