Simple Steps to Avoid Personal Bankruptcy

Bankruptcy is a word that scares most people and gives them nightmares. Why wouldn’t it? If somebody told you that your money was running out and you wouldn’t be able to pay your debts, how would you feel? Scared? Fear is just one of the emotions that will plague you. Personal bankruptcy and having financial difficulties are synonymous in the sense that both will eventually leave you broke. It’s best to find a way out of the situation before matters get out of hand. If you have decided to file bankruptcy and you are situated in the state of Florida, visit the Orlando Bankruptcy Attorney to get a professional opinion. Additionally, I have compiled a list of 4 important steps for you to take before the worst happens.
Evaluate Your Assets
As soon as you start to feel financial constraints, think about the assets you have recently bought. Trouble starts when we buy too many things on credit, suppressing the fact that we have to eventually pay off all the borrowed money. Look around; is your rent taking away a chunk of your income or is it a car you bought or leased? It’s best to regularly assess the amount of money you owe and for what. Once you determine this, contemplate if you are able to delay an expense or repayment of a debt for the time being until you get a stronger foothold on your financial situation. Another way is to check for unused stuff like books or CDs lying around your house. Sell whatever can be sold to conjure up a decent chunk of change.
Forget Credit Cards
Credit cards are like quicksand; once you get caught in credit card debt it is immensely difficult to get out. Unless you have control over your expenses, keeping a credit card is not an advisable action. Even if you have kept one for emergencies, it is best you cut it off and forget you even had one. The definition of the emergency may change for you personally once you have a credit card. Suddenly, fulfilling your urges will count as an emergency while you just tell yourself that you will pay off your debt at a later and later date.
Supplement Your Income
A simple rule of thumb when it comes to flailing finances is to find ways to supplement your income. The job you are working is obviously not paying enough to support your expenses, so you probably need a part-time job that can help you earn another $400 – $500 a month. Not too much more, but a reasonable amount. Getting a part-time job depends upon your skills. Every human is good at something, so find your something! You could be great at painting, or mechanical repairs; search for your niche, earn some extra bucks, and in no time you will see yourself sailing above your crushing debt.
Make a Budget
Perhaps the simplest action you can take to avoid personal bankruptcy is to take a pencil and paper and write down all of your expenses, incomes, debts, and credits. Having a visual representation of your situation can help you tackle it easier. Write down everything! Even the cost of a pen you bought. This might seem so tedious that you forget to do it but since everyone has a smartphone nowadays, jotting down a minor expense can be a breeze. You can even use a financial software like Microsoft Excel to make your work easier.
This is as simple as it gets when it comes to avoiding personal bankruptcy. In extreme cases, you can summon your friends and family to come to your aid, however, remember you might have to pay them back sometime later.
Source:
https://www.youneedabudget.com/7-ways-to-avoid-personal-bankruptcy/
https://money.usnews.com/money/blogs/my-money/2012/05/16/5-ways-to-avoid-filing-for-bankruptcy