If you‚ like a large number of Americans‚ are trapped in a perpetual and vicious debt cycle‚ we are here to help.
Many of the clients who meet with our Los Angeles Chapter 7 bankruptcy lawyers are juggling their income‚ payday loans‚ medical bills‚ student loans‚ car payments and more. They might not be falling greatly behind‚ but they never seem to be getting ahead either.
Often‚ by the time someone files for a Chapter 7 bankruptcy‚ it’s actually far past the time when they actually should have done so. They wait until their savings are completely depleted‚ their retirement funds have been siphoned and their home has been foreclosed upon. And the truth is‚ despite the fear that people initially have about filing‚ a bankruptcy may actually be able to protect those assets. This is why it’s important to meet with a bankruptcy attorney BEFORE you actually get too far behind with your debt.
That said‚ it’s important that after you file you closely evaluate your spending habits and what sorts of things can be done to keep you afloat beyond bankruptcy.
Part of what bankruptcy does is wipe the slate clean. It gives you a chance to start over‚ and that means it’s a good idea to have a plan so that you can avoid winding up in another debt cycle.
The first step is to establish a savings. In order to do this‚ you need to have a serious analysis of how much you earn‚ what you are spending and what things you can do without. In order to do this‚ keep track of everything you spend for an entire month. I mean everything – down to the chips you buy from the vending machine for an afternoon snack at work.
This will give you a clear picture of where you stand financially. You will probably be surprised at how much you waste. For a lot of people‚ this involves food (especially eating out) and entertainment.
Other ways you might consider cutting expenses would be carpooling‚ axing your cable service or getting rid of your land line phone.
You may also want to consider if there are any methods by which you could earn a little extra income‚ whether that’s overtime at your job‚ doing some freelance work or selling certain household items that you no longer need.
Once you establish what you have to work with‚ commit to paying off those debts with the highest interest rates first. After a Chapter 7 bankruptcy‚ you likely won’t be left with credit card debt‚ but you may have other debts remaining‚ such as student loans or child support.
Those will take precedence. Then just remember to make your savings a priority over your entertainment costs.
All of this will put you on a path to a brighter financial future.
If you are considering filing for bankruptcy‚ contact Los Angeles bankruptcy attorneys at Cal West Law to schedule your free consultation. Call (818) 446-1334.
File Bankruptcy to Dispose of My Debt?‚ By Steve Bucci‚ Fox Business