Filing Chapter 7 or Chapter 13 Bankruptcy may seem like an easy way out from debts, but the consequences may follow you for 7 to 10 years. Las Vegas Bankruptcy Attorney John Ryan recommends individuals meet with an attorney familiar with debt relief options. Henderson Bankruptcy Lawyer John Ryan also suggests consumers consider all available options, including debt settlement, before filing bankruptcy. Always look for other alternatives before choosing for chapter 7 or chapter 13.
- Detail out all your debts before considering bankruptcy
A good first step is to look at all your secured debts, including mortgage and car loans. How much do you budget for repayment each month for these expenses? What are the interest rates and how long until these expenses are paid in full?
Next, you will want to list all of your fixed expenses including electric, phone, insurance, food, etc. What are the total costs for these expenses each month? Keep in mind these costs may fluctuate depending on the time of year or other factors
Your next step will be to review your credit card debts. Review all of your credit card statements and write down the amount you owe for each bank and the interest rate charged.
Finally, list all of your expendable expenses; these are your optional expenses such as money spent on entertainment, the $5.00 cappuccino at Starbucks, gym, membership, dinners at restaurant and other impulsive purchases.
2. . Eliminate the unnecessary expenses
By now you should have a good idea on where your money goes every month.. Make a diet plan on your available cash. In your cash diet plan, list all the money that you save by eliminating all of the optional expenses. You will surprise yourself at just how much money you save by carefully controlling your expenses. This should also free up money that can now be use to pay down debt.
3. Get your family involved and work as a team
Remember, you don’t have to do it alone. Getting out of debt is a stressful time so it is often better to get others involved or to let loved ones know what you up against. By getting your loved ones involved you can share the debt burden with others and not feel like you have to go it alone. Additionally, by letting others know the financial problem, it is often easier to work together to control household spending and eliminate the unnecessary expenses.
4. Cash out with your assets
If you have equity, you are in a better situation because you could refinance or get a secured loan for pay off your debts. If you are looking for bankruptcy as your debt relief option, your may not have any equity in hand already. But equity is not the only asset; many people tend to forget that things that have cash value, but not sentimental value. Think antiques, old clothes or collectibles.
List down all the assets you own which your can sell and cash out. Check the closets, garage and storage locker and find out what you can live without. Then, cash them out through garage sales, eBay or consignment shops. Use the money to pay down your debts as much as possible.
5. Go for consumer counseling service
Arrange an appointment with a credit counseling agency and let the counselor to understand your finance situation and draft a budget for you. Review the debt management plan proposed to you before your sign to enroll into the plan. You may get a few plans from other credit counseling agencies for comparison. Choose the one which best suit your current financial needs. Although a debt-management plan can have a negative impact on your credit, it’s better than bankruptcy.
6. Consider a side hustle
Utilize your out-of-work time by developing a side hustle for additional income. Popular side hustles include working at Fedex or UPS during the holidays or driving for Uber or Lift. But there are other options as well, if you have special talents, consider how you might earn additional income using your skills and talent. Although you may not earn much in your part time job, a little money coming in can keep a bad financial situation from getting worse.
Filing Chapter 7 or Chapter 13 Bankruptcy may seem like an easy way out from debts, but the consequences may follow you for 7 to 10 years. Consumers have many choices for affordable bankruptcy attorneys and many Las Vegas bankruptcy attorneys free consultation. Las Vegas Bankruptcy Lawyer John Ryan recommends individuals meet with an attorney familiar with debt relief options. Henderson Bankruptcy Lawyer John Ryan also suggests consumers consider all available options, including debt settlement, before filing bankruptcy. Always look for other alternatives before choosing for chapter 7 or chapter 13. Best Las Vegas Bankruptcy Attorney.