Getting to the point where you must declare bankruptcy to preserve your home is a road most people don’t want to be on. However, if you have decided to file for bankruptcy because it’s the only plausible option to protect your life and stability, there is no shame in that. Nonetheless, this outcome can be prevented if you make wise decisions with your money and avoid making unsustainable investments that could later come to haunt you. Thankfully, there are a few recommendations you can follow to prevent bankruptcy in Tulsa, Oklahoma.
Make a Budget
Every month, it’s recommended that individuals and families alike make a list of their expenses and determine how much money they will be putting toward each spending category. This list should consist of monthly expenses such as utilities, rent or mortgage, travel, entertainment, food, gas, and others. Setting limits for how much money you need or are willing to spend on every category will help reorient your funds to the appropriate categories.
Reduce Your Expenses
Investing more money than you can is a quick way to get yourself into a deficit, which is why you must be only purchasing those things you can afford. A heavy reliance on credit cards and going past credit limits set by your card issuer tend to be indications that you may be pushing past the boundaries and becoming too dependent on credit to live the life you desire. Perhaps this could be a good time to reevaluate your priorities and revise your spending habits. Investopedia claims that for those who “can’t sustain [their lifestyle] on an all-cash existence, [downsizing]” is the best option.
Negotiate with Creditors
Once you have accrued debts, it is always possible and recommended to meet with creditors to help negotiate your debts. The idea is that as soon as you notice that you won’t be able to commit to monthly payments as you had planned, you reach out to creditors to reduce the set interest rates and reconfigure the payment terms. This way, your creditors will see that you are interested in preserving good relations with them. According to Forbes “many consumers aren’t aware that they can actually settle their debt with collectors, meaning they can come to an agreement to pay less than the actual amount owed.”
When in doubt, we recommend seeking counsel and assistance from an experienced bankruptcy attorney. Whether you need additional tips to prevent bankruptcy or assistance filing for Chapter 7, Chapter 13, or other kinds of bankruptcy, it’s important to have seasoned counsel you can always count on. For advice or aid, contact the experts at the Henson Law Firm, PLLC.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.