How Can I avoid Bankruptcy?

If at all possible, avoiding bankruptcy is usually a better solution than filing bankruptcy. When clients come to George E. Jacobs & Associates, our Flint bankruptcy attorneys first suggest actions they can take to avoid bankruptcy, provided that it is realistic for their situation. Also, after clients file bankruptcy and get a fresh start, we can advise them about how to stay out of financial trouble in the future.

Alternatives to filing bankruptcy

When clients turn to our bankruptcy attorneys in Flint, MI, we often suggest the following alternatives to bankruptcy:

Negotiate a debt settlement. Reduce the debt owed by negotiating with creditors. You can do this yourself or use an agency or lawyer to negotiate on your behalf. Today many creditors are willing to accept less payment rather than deal with a debtor filing bankruptcy.
Sell assets to pay off debt. Sometimes you can sell assets to pay off debt on eBay or Craig’s List, avoid bankruptcy, and get better value for your assets than a bankruptcy trustee would get in a Chapter 7 liquidation sale.
Increase income. Working overtime, taking on an extra job, or having a stay-at-home spouse begin working may allow you to pay down debt.
Reduce expenses. Devise a budget and cut out extras that are not essential, such as entertainment, eating out at restaurants, or buying new clothes. Figure out how to cut corners and use the saved money to pay debt.
Pay off oldest debts first. The reason to pay off oldest debts first is to avoid debt going to a collection agency, gathering greater interest, or incurring avoidable penalties.

Steps that help you stay out of financial trouble

If teetering on the edge of financial trouble, be wise in your actions. Some financial trouble occurs through unforeseen events like divorce, job loss, or health problems. However, bad habits can also lead to debt, and correcting bad habits can prevent financial problems from worsening.
Our Flint bankruptcy attorneys suggest that you:

Make a budget and stick to it
Pay off credit cards monthly or do not use them
Buy expensive items through cash not credit
Build up savings to use for emergencies
Do not invest in items you cannot easily afford

Consult a Flint bankruptcy attorney

If you are struggling financially, contact the Flint Bankruptcy attorneys of George E. Jacobs & Associates to arrange a free initial consultation.