Financial trouble is one of the situations that many people may face at least once in their lives. A couple of bad decisions and boom! Your money is lost, and you are now having trouble finding funds. Some people get into these situations because of debt; either through unpaid bills or straight out unfulfilled loans.
Even if you think that you’re financially secure, unexpected events, such as accidents or emergency expenses, can happen and these will take a toll on even your most trusted savings. Once that happens, the money can drain faster than water from a broken bucket.
But don’t let that exhaust all hope, there are measures you can take to bounce back. If you find yourself declaring bankruptcy, give these tips a try.
Since you’re filing a case, you can’t rely on just anybody who wants to give you advice. You need reliable and knowledgeable people to take you on the right path. Also, once you file for bankruptcy, the court will assign someone called a trustee.
Their duty is to review what assets you can muster and liquidate them so they can be distributed to your creditors as long as they have a valid claim. Talk to a Chapter 7 bankruptcy lawyer here in Salt Lake regarding your case and seek the right advice.
That way, you can be better guided on what to do during and after the “storm”.
Prepare Your Paperwork
Filing for bankruptcy would require you to fulfill some requirements and supply records that you have. This will include all your financial records, such as receipts and other proofs of purchase as well as any other documents related to your spending.
It’s important to contact your bank about this since you’ll also need credit card statements and check records. This will help you in making your declaration of assets and liabilities and make tracking your expenses easily. Filing the case itself will cost you since there’s also a filing fee need to be fulfilled in your local court.
Mind Your Spending Habits
Although you have assets that will be liquidated, you still have to spend money on basic needs like food, electricity, gas, and water. Having a stable job or some form of business would be helpful for you to maintain your financial supply as well as a means of getting back on track.
Now, since you still have means of getting money, do better when it comes to your spending habits. This means you would need to make sacrifices such as putting costly hobbies on hiatus until you get back on track. Counseling could also help you if you still have the means.
Bankruptcy is never a good situation for anyone, whatever the cause. However, you can still treat it as a learning experience and use it to move further forward. Most people in this predicament would assume that this would be the end of their life as they know it – and they may be right.
But for better or worse, it’s always up to you. You can treat this as an eye-opening situation that nothing in this world is permanent, not even your supply of funds.