July 9th, 2009 by Josh Ramos

You’ve probably realized by now that filing for bankruptcy can be a pretty complicated matter. Still, it’s tempting to try to go through the process by yourself in order to save money.

Since you’re thinking about declaring personal bankruptcy, by definition you don’t have a big budget to hire expensive lawyers. Does that mean that you should forget about the lawyer and do everything by yourself?

Trying to declare bankruptcy on your own is not a good idea especially with the changes in the bankruptcy law that have taken effect since 2005. There are more obstacles put in your place, and there are more restrictions and details that you have to be aware of. Why not let your lawyer deal with these issues?

For example, among the recent changes is something called the means test. The purpose of this test is to try to determine whether you can actually pay off your bills.

Those with a higher income than the average salary for their state will have to go through some extra steps in order to prove their need for bankruptcy.

Taking a means test includes having to more carefully document your income and expenses, but there are other details that your lawyer will need to explain to you.

You’re well meaning friends or relatives may try to convince you that bankruptcy doesn’t require lawyer, and some of them may have gone through that process by themselves sometime in the past. Remember, though, that the recent bankruptcy reform law does make things more difficult for the layman (and even for a lawyer to some extent).

Don’t take chances with such a big decision for your financial future and the security of your family. Speak to a good bankruptcy lawyer to help you make the right decision regarding bankruptcy and to guide you through the entire process.

bankruptcy, Credit, finances, financial, Personal Bankruptcy

June 12th, 2009 by Chris Blanchet

There are several reasons why you must avoid bankruptcy at all costs. In the first instance, it may look like the best solution, as it offers a clean state, freeing one from all the debts that one owes to various creditors and that were almost impossible to pay off otherwise. Still, it is not the right solution because you may get instant relief because of this but in the long run it will make your financial life terrible. You can realize the severity of the consequences with the very fact that it may even affect your future employment. That is the reason why you should do everything that you can to avoid bankruptcy.

Following is a brief rundown on how to go about it.

Get The True Picture Of Your Debts

The first step you can take is to get a full picture of your debt load. Start with gathering all of your loan and credit card statements to determine the amount you are paying in terms of monthly servicing costs, interest rate, and total debt. Weigh these bills against corresponding assets, such as real estate in the case of a mortgage. Use his opportunity to determine if there are other assets that can be liquidated to repay debt.

Healthy vs unhealthy debt – the Net Worth Statement

The next step is to categorize the debts as healthy debts and unhealthy debts. This will give you the real picture and you will be in a better position to plan on how to avoid bankruptcy. Medical bills, high-rate car loans, personal loans, and credit card debts are unhealthy debts while home loans are healthy debts.

Sum Up All Your Income And Expenses

Once you are aware of how much money you to owe to others, it is time to sum up your income and expenses.

Spend Less and Earn More

Since you are in debt, you will need more money to repay the same. The only way to get that money is to increase your income and reduce expenses. When it comes to making a reduction in expenses, even saving a single dollar can make a big difference. If you seriously want to avoid bankruptcy, you should not lose any opportunity to save money – no matter how small it is. Such amounts when accumulated on an annual basis can take care of a good amount of your debt.

However, if you are in a deep trouble and are unable to think of a better alternative, you should consult a credit counselor. They are professionals that can tell you how to manage everything in an effective way in order to regain control of your finances and avoid bankruptcy. Another way to go about improving your finances would be to invest a small amount of money into a detailed e-book on the subject as well as personal finance programs that can help get your finances back on track. At less than $50, there are programs that are comprehensive enough to be well worth the investment.

avoid bankruptcy, bankruptcy, Credit, credit repair, debt repayment, finances, repay debt