The word ‘bankruptcy’ can evoke some strong negative feelings toward the subject. No one wants to be in the kind of situation where that word could be applied to them. But sometimes circumstances happen that are beyond our control, and it may be time to consider bankruptcy. Here are a few ways to decide if bankruptcy may be right for you.
First of all, you will have to determine if you can afford to pay off the bills you have. If you see that you are not, it does not make sense to keep struggling month after month to pay off bills that you just can’t afford. At this point, it might be better to just cut and run, and start trying to put the pieces of your life back together. Learn more by consulting a dallas bankruptcy attorney.
You need to start by making a budget. Write down everything that comes in, and everything that goes out. Try to be as accurate as possible. Keeping all your receipts and bank statements is a great way to keep an accurate count of these kinds of things. Make sure to write down expenses that are paid off once or twice a year such as a car tag or auto insurance.
Once you have listed all your necessary spending, take a count of your non-essential spending. How much are you spending on lattes every week? How about all those trips to the movies or one of the biggest frivolous spending items – going out to eat? All those things can add up over time, and if you aren’t keeping track of your finances, you will wonder where all your money is going. Try and write down things that you can do without or limit. Do you think you would be willing to live on this new budget for the next 3 to 5 years while you pay off your debt? If you want to get your life back on track, you should be.
Once you have outlined a new, more restrictive budget, figure out how much money you will have left over at the end of each month after necessary expenses. Any and all of this amount should go towards paying down your debt, if you have enough to make more than the minimum payment amounts due each month. By only paying the minimum on things like credit cards, you are just digging your financial hole deeper, and bankruptcy may be a better long term solution.Both comments and pings are currently closed.