Every day‚ our Los Angeles bankruptcy attorneys come across clients whose finances are in shambles.
Often‚ it’s due to circumstances beyond their control: a death‚ a divorce‚ a lay-off‚ outrageous medical bills.
Pulling themselves out of that rut is often best accomplished by filing for bankruptcy protection‚ which will provide immediate relief from creditor harassment‚ as well as offers you the opportunity to free yourself of that debt.
Once you emerge‚ it involves taking a regular and close look at your overall financial landscape to determine where improvements can be made. Even those who aren’t struggling with debt can benefit from this advice to turn over a new financial leaf this fall.
Here are some guidelines to keep in mind:
- Give yourself a financial check-up. Just like you wouldn’t let a health issue linger for days or weeks before seeing a doctor‚ you shouldn’t allow your finances to go unchecked either. Even if you believe you are in relatively good shape‚ an annual evaluation isn’t a bad idea. Fall is a great time to do this because it’s right before the holidays and it gives you some time before the end of the year to take action. Review your last several months of credit card statements‚ bank statements and any other loans. Try to pinpoint your areas of overspending. Take a look to at your health care plan and determine whether next year‚ you might need to switch to a different type of plan.
- Review your disability insurance coverage and your life insurance coverage. The fact is‚ you never know when something awful may happen that may leave you either out of work or your family struggling to maintain in your absence. Make sure that you have these types of insurance and that they are adequate.
- Prepare for the holidays. Many people tend to overspend and rack up credit card debt in a rush to get everyone gifts at the last minute. If you can take a look now‚ before the pressure is on‚ at who you would like to buy for and how much you want to spend‚ you may be able to avoid money woes later on.
- Get ready for taxes next year. Congress has so far failed to act on extension of a number of tax cuts that are set to expire at the end of the year. That means that almost everyone is going to see their taxes increase – an average of $3‚800 per household. Prepare to have that money set aside so you won’t be met with a harsh reality later on.
- Put more money into your retirement account or accounts. This is critical to ensuring your financial stability in the future‚ and every little bit helps.
- Try cutting food costs. No‚ you may not break the bank with your grocery bill‚ but there are ways you can cut corners that can help. for example‚ canning summer berries and tomatoes can be a good way of reducing winter grocery bills. Another would be growing an indoor her garden. Small savings like this can eventually add up.
If you do find yourself trapped in a debt cycle‚ don’t wait to call us.
If you are thinking about filing a Chapter 7 bankruptcy in Los Angeles‚ contact Cal West Law to schedule your free consultation. Call (818) 446-1334.