Debt has become a way of life for many consumers.
Many people dread the word bankruptcy and try to avoid it at all costs. Experienced bankruptcy lawyers in Ogden UT will advise that it should be a last resort.
It’s normal to be afraid and be ashamed it can literally turn your world upside down.
You may have done everything that you can to avoid bankruptcy, but even the most successful business people still have to go through with it.
Even millionaires are not exempt; just one incident can cause a business to fail.
It’s a tough process, but many have gone through bankruptcy with flying colors.
What happens when you file for bankruptcy?
When you file for bankruptcy, you are informing the courts that you are unable to pay your debts.
Bankruptcy will cancel many of your debts to give you a new beginning. Your credit report will take a hit because this will be listed for the next 10 years.
Filing for bankruptcy stops creditors from collecting money from you. They should cease calling or suing you after you have filed.
Bankruptcy can also prevent foreclosure of your home, garnishment of salaries, or repossession of property.
Take note that unsecured debt like child support, student loans, most tax debt are not dischargeable in bankruptcy.
The record on your credit report will be removed after ten years, so this is good news.
A lot of people who are facing bankruptcy have lost hope and look like they have given up.
They fail to see the alternatives to avoid filing for bankruptcy. Lawyers can recommend some of these steps so you can avoid bankruptcy.
Ways To Avoid Bankruptcy
Take Care of the Basics
The priority when making your way out of debt while avoiding bankruptcy is to secure the basic necessities.
Food, shelter, clothing, utilities, and transportation should be covered before paying any creditor.
Losing your house or going hungry is not good just because your credit card company is harassing you.
Sell Your Stuff
It may be painful to let go, but your selling your assets can help turn your situation around. Try selling jewelry, furniture, and electronics.
You may not realize it, but you have money lying around in your house. Clothes, books, DVDs, tools, toys, and other stuff you may have can be sold for cash.
You might want to sell everything that you don’t need. Use the money to pay bills like your mortgage and car payments. Being up to date is vital because late fees will increase what you owe to creditors.
You can buy the stuff you sold once finances are doing well again.
Start Living on a Low Budget
Avoiding bankruptcy takes a lot of work, living on a budget without the usual luxuries needs to be done.
This means cutting your cable, cell phone plans, eating out, vacations, movies, and other frills until you have paid your debts.
No branded food for the moment, eat generic and drink water from the tap.
Work Two Jobs
It’s common for people to have 2 to 3 jobs nowadays. If you want to avoid filing for bankruptcy, you need an additional source of income.
Bankruptcy lawyers would recommend that the income from your second or third job be used to pay on debt.
Getting a second or third job may be difficult, especially if you have a family to take care of, but remember that this is only temporary.
Once your finances are in order once more, you can give up those extra jobs.
The extra income from the additional work will help you pay off debts quicker, so the added effort will be worth it.
Get Help from Family and Friends
Desperate situations call for drastic measures. It’s time to swallow your pride and ask for help from friends and family.
Borrow money that can help keep you out of bankruptcy. Approach them with a plan to repay once your finances are going upward once more.
Experience with Bankruptcy Cases in Utah
You may want to avoid bankruptcy, but there are situations when filing would be better than avoidance.
You have cut down on expenses, sold all of your stuff, and you are working two jobs. Despite all the effort, you realize that filing for bankruptcy is the best solution for your situation.
Our team of bankruptcy lawyers can help you through the whole process of filing for bankruptcy.
We have been handling Chapter 7 and 13 bankruptcies for Utah residents and business owners since 1984. That’s many years of experience in helping families get through every bankruptcy scenario you can think of.
We would love to share details in the bankruptcy process that may help you make significant decisions.
If you are new to bankruptcy proceedings, you may miss critical steps that can have an impact on exemptions. You may also forget some categories of debts that you can include in debt elimination.
Mistakes can be costly, your case can drag longer, or you may not have some of your debts discharged.
It’s always best to have experienced bankruptcy lawyers by your side to guide you every step of the way.
Godfrey Law Bankruptcy Lawyers are Ready to Help
- Free Consultation
- Best rates in Utah
- Accurate Advice
- Free Evaluation
- Over three decades of experience
- Strict with Confidentiality
We have an advanced technology-driven process management system in place that leads to the best results at lower costs.
Let’s talk! Allow our trusted and reliable bankruptcy lawyers in Ogden UT to help you get a fresh start!
Give us a call or send us a message on our website.