Bankruptcy is a good way for people in serious debt to reclaim their solvency and rebuild their financial stability, but it doesn’t come without significant costs. If you feel that you are heading towards bankruptcy, Groce & DeArmon, P.C. recommend that you seek to avoid bankruptcy if at all possible. In today’s blog post, the bankruptcy lawyers at Groce & DeArmon, P.C. will take a look at some ways that you or your business can work to avoid a bankruptcy filing.
Begin Selling Assets
The first thing that you can do to avoid bankruptcy, especially if you are looking at filing as an individual, is to begin selling your assets. This might not seem like a desirable solution, but you are likely to be forced to do so if you file for bankruptcy, particularly with chapter 7 bankruptcy. If you are facing financial difficulties and looking at bankruptcy, any bankruptcy attorney will tell you to look at selling non-essential assets. These assets may include a second car, vacation property, or even downsizing to a smaller home.
Nobody wants to start selling off their assets, but if you are in a dire situation it might be the best solution for protecting what really matters.
Reach Out To Your Creditors
It may feel like the last thing you want to do, but if you are in financial distress and think you might need to contact a bankruptcy lawyer, it can be a good idea to reach out to your creditors and let them know about your situation. Your creditors are looking for the money that is owed to them, but they also know that a bankruptcy proceeding can be lengthy. Creditors might prefer to receive a portion of the debt quickly, rather than wait for the completion of a bankruptcy. So, it may be beneficial to simply ask them to decrease your monthly payment or lower your interest rate.
Stop All Unnecessary Spending
If you are in debt and struggling financially, yet you are still spending money on non-essential things, you need to stop immediately. Responsible spending is the most important step we can recommend at Groce & DeArmon. To avoid bankruptcy, you will need to devote as much of the money you are bringing in on a week-to-week basis towards your debts. You can’t do that if you are spending it on things like entertainment or eating out.
So, pause your Netflix subscription and get rid of your unlimited data cell phone plan. During this process, you will need to spend as little money as possible to avoid the office of a bankruptcy lawyer.
Contact The Bankruptcy Lawyers At Groce & DeArmon, P.C.
If you have taken the recommended steps and you are still in need of a bankruptcy lawyer, you will want to get in touch with Groce & DeArmon. We have the best bankruptcy lawyers in the area, and we want to help you get back on your feet. For more information, give us a call at (417) 862-3706 or contact us online for more information today.