No one wants to end up in a position where they are bankrupt. Being on a blacklist for almost a decade and being stuck in a financial position where you can’t get so much as a payday loan is not a great place to be. To be stuck with a credit report reflecting bankruptcy can feel like a failure in life, and no one wants to be a part of that. The period of having a bankruptcy on your credit file is a bleak one. No auto loans, no mortgages, no credit cards – nothing. Lenders won’t touch you because they’d worry you’d go right back into bankruptcy again. If they do give you money to borrow it won’t be on great terms.

 

It makes sense, then, that you would have Anchor Law Firm on your side if you are facing bankruptcy. It also makes sense that you would get some solid advice if this is for your business. To be honest, even if it’s you personally going bankrupt, you need someone on your side to guide you through it. Below, we’ve got five ways you can avoid it entirely.

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1. Start to budget. If you haven’t already, you need to learn how to budget your money so that you can make the necessary payments you have to make. Creating and sticking to that budget is the very first step that you take in steering well clear of bankruptcy. If you know how much cash you’ll have each month, you can budget properly to avoid debt that you can’t recover from.
2. Steer clear of taking on any credit cards. Instant money sounds like a good idea until it’s you and you have spent a few thousand without thinking about it. Now you have to pay it back and you have to pay interest on top of it. When it comes to bankruptcy, credit cards are a very slippery slope that are completely avoidable.
3. Manage your spending. You may want to spend money but you cannot spend what you don’t have. Sticking to your budget is really important here as you can blow out the money you HAVE to spend, but don’t blow what you don’t have! Get rid of magazine subscriptions and anything that you’re paying from your account that you’re not managing correctly or you don’t need anymore.
4. Deal with the debt that you’ve got before beginning to create more. You don’t need to live beyond your means – you cannot afford to. As much as possible, use your spare cash to pay down your debt and get rid of it altogether. The more you get rid of the better as you can come up for air!
5. Speak to your creditors. Before you go down the route of bankruptcy, talk to your creditors and come up with a plan. You’ll be surprised how willing they are to help you to pay off your debt – they don’t want you to owe them anymore than you do. Take the time to check!