• Bankruptcy should be considered as a last resort; not as a first
  
• If you do decide to file make it a sound decision instead of an emotional one
  
• The ramifications of filing bankruptcy are more than just getting your debt cleared
  
• What bankruptcy won’t do for your finances
  
• What happens when you write a bad check to the Girl Scouts
  

Talking
about Bankruptcy is not something I enjoy doing. It is also something I
hope you are not going through. However I field calls and emails all
the time from people who feel like they are stuck and their only way out
is to file. To me Bankruptcy is like divorce, there are good people who
go through divorce but is isn’t something I suggest people go through.

But
with that being said, I’m not angry or disappointed in you do end us
filing for Bankruptcy protection. However I recommend filing only as a
last result, after you have tried everything else first. On today’s
lesson we cover three things to do before filing for bankruptcy.

1. Assess
   your finances-When you are getting hounded by creditors and you don’t
   know how you are going to come up with this months rent payment it can
   be hard to sit down and spend some time with your finances. You might
   feel like what’s the point and the stress will want to make you not
   check your mailbox for fear of getting more bills. It is an emotional
   situation and you can feel like you just want to give up. But put the
   emotional energy into know your financial situation better. It will help
   determine if you are truly bankrupt. I have found a lot of times that
   bad financial situations are a result of just being disorganized. But
   finding out what your income and expenses are each month might allow you
   to see that there are other alternatives to bankruptcy.
   
2. Don’t
   pay your creditors-Hear me out on this one. I’m not saying stiff your
   creditors when you have the money to pay them. But what I am saying is
   to sit down and make sure that you take care of your four walls.
   After that if you have money left over you can then pay your other
   bills. But if you don’t have anymore left over then you can’t and don’t
   pay anyone else. If you have a difficult time not paying your bills on
   purpose well what do you think will happen when you file bankruptcy? But
   by focusing on your needs first, you gain back some control of your
   financial life. Once you regain control then you can go back and save
   some money and settle later with your creditors. That way you can hold
   you head high that you tried your best, your creditors got some money,
   and you are able to have your life back.
   
3. Ponder the ramifications of filing-Filing for Bankruptcy might seem like the easy thing to do in the short run. But there are long term
   financial consequences to declaring bankruptcy. Other thing you need to
   think about include what will I do for a car if I am giving up the car
   in bankruptcy? What happens to my house? What assets will they seize. If
   you can’t pay your bills due to no income, bankruptcy does not create
   an income. How are you going to pay for your basic necessities? Also
   student loans, which are a major cause of financial strain, are not
   allowed to be bankrupt. How will you pay them? Don’t file for bankruptcy
   out of emotion. Consider all your options and be at peace with your
   decision.
   

 

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