Avoiding Bankruptcy in 2023

We understand that filing for bankruptcy is no ones “first choice”. While there are many benefits to be gained from filing for bankruptcy, we are always honest with clients during the initial free consultation. We counsel people on other options they may have to resolve their debts and/or if filling for bankruptcy is simply not the best route based on their current circumstances.  If you are struggling with debt, we encourage you to give us a call.  We offer free in-office of phone consultation to aid you in your decision-making process.  We advocate to resolution, plan and simple. Ignoring the problem will not fix it, so we suggest finding the resolution path that is right for you to avoid the anxiety associated with stressed finances and further deterioration of your credit score if action is not taken.  Call us today at 866-261-8282 to speak with a licensed attorney.

If you are trying to avoid bankruptcy and work on correcting your budget and improving financial concerns before they get out of hand, here are some practical suggestions:

1. Create a budget and stick to it: One of the most effective ways to avoid bankruptcy is to create a budget and stick to it. A budget will help you keep track of your income and expenses and ensure that you are living within your means. You can avoid overspending and falling into debt by sticking to your budget.

2. Pay off high-interest debt: High-interest debt, such as credit card debt, can quickly spiral out of control. To avoid bankruptcy, it is essential to pay off high-interest debt as soon as possible. This can be done by consolidating your debt, negotiating with your creditors, or working with a credit counseling agency.  We do not suggest taking out a loan on a secured asset (i.e. your home) or against your retirement to satisfy unsecured debt obligations.  This can jeopardize your most important assets for a secure financial future.  If we can’t pay off high interest rate debt and you are simply “treading water” every month, it does make sense to consider filing for bankruptcy.

3. Increase your income: Another way to avoid bankruptcy is to increase your revenue. This can be done by taking on a second job, starting a side business, or negotiating a raise at your current job. Any additional income can be used to pay off debt or build an emergency fund.

4. Cut expenses: Reducing your expenses is another key way to avoid getting into debt and relying on a bankruptcy. This can be done by cutting back on unnecessary expenses, such as eating out or subscription services, and finding ways to save on essential expenses, such as groceries or utility bills.

5. Build an emergency fund: An emergency fund is a savings account that can be used to cover unexpected expenses, such as medical bills or car repairs. By having an emergency fund in place, you can avoid using credit cards or taking out loans in the event of an emergency.

6. Seek professional help: If you are struggling to avoid bankruptcy, it may be beneficial to seek professional help. Acclaim Legal Services can help you navigate your best debt resolution options and find the best solution for your financial situation. We can help you understand the pros and cons of bankruptcy and alternatives to bankruptcy, such as debt settlement or debt consolidation.

In conclusion, avoiding bankruptcy in 2023 requires a combination of budgeting, paying off high-interest debt, increasing income, cutting expenses, building an emergency fund, and seeking professional help. 

Acclaim Legal Services is here to help!  Call us today for a free consultation.  Acting early and finding a long-term debt solution are keys to achieving finance peace of mind.