With the economy getting harder every day, employers writing off employees and more people facing reduced or minimal salaries, it’s normal for debtors to file for bankruptcy. The question in most minds is whether it’s the right choice, or if it can be avoided.
Bankruptcy is right. If the defaulter has debts, they’re unable to clear and own important assets that they want to protect. After default, creditors make several attempts to convince the debtor to pay, but if they don’t respond, then the creditor may file a collection lawsuit. The court issues creditors with a judgment that allows them to foreclosure, repossess property, seize debtor’s property, or garnish their wages and salaries.
If the defaulter files for bankruptcy, their assets are protected from the creditor by federal and state exemptions. Although many people despise bankruptcy, it’s the only way debtors can protect their essential assets after being overwhelmed by debts. Like other cases, consumers can file for bankruptcy as a pro se or with the help of an attorney. However, bankruptcy is such a complex court, and getting a qualified Arizona bankruptcy lawyer to help debtors navigate the process is the best choice. Suppose a defaulter chooses to file as a pro se. In that case, they expose themselves to several risks, including penalties due to improper filing, time wasted, and worse, job loss since they have to miss a job and be present in court during the numerous hearings.
Is Bankruptcy Avoidable?
Yes. And the best way to avoid bankruptcy is by designing a way to manage and stay in control of debts and personal finances. If an insolvent is already buried deep into debts, then bankruptcy is the right course of action. They can use bankruptcy to reorganize and bounce back on track.
People interact with many sources on the internet, and other media houses giving directions on how to stay out of debt. Most of these methods fail, and many debtors now treat them like new generation cliché. Before rubbishing them all, why not try these time tested procedures and see the wonders.
If all previous methods fail, then it’s time individuals try treating their lives as a business. The biggest focus is being in control of finances. These methods are derived from the lessons learned on successful small businesses. If a business can withstand inflation, a hard economy, and stay afloat for more than four years and counting, what businessmen do differently is the solution debtors may need.
Tracking Where The Money Goes
Small businesses keep hard data on their spending records. This practice gives them information on what doesn’t benefit the business, what they need to add, and what the business doesn’t require. They use the data to cut on all unnecessary expenses and focus more on production and development. Individuals, too, can make this data to keep them on track and cut back on non-essential expenses.
Track Spending and Avoid Taking on Over-Heard Unless Necessary
People in business are very cautious when spending money since they understand that it’s the main asset in their operations. However sweet a product is talked of; they only spend on it if it’s essential. What if individuals applied this strategy to their daily lives? Before buying the new product trending in many homes, ask themselves how important it is to their lives. Instead of getting something new because people say it’s better, they should ask if they really need it and if it’ll still serve the same as they already have. Smart decision making when it gets to spend will ensure that they cut on unnecessary credit card bills and avoid piling debts.
Have Long-Term Goals
Many businesses don’t mind spending too many resources and time on a product at its inception. They understand that the first days of a product are always hard, but if the idea is viable, then they know it will yield them more returns in the future. Personal lives should also be driven in such a manner. Individuals can develop a well-thought-out and well-planned strategy, stick to it, and drive it to produce results in the coming years.
On the other hand, it’s crucial to avoid get-rich-quick schemes, since most of these deals are big scams. They should come up with something, research it, get organized and take off, taking a step at a time.
Be Organized
Some individuals lost track of who their creditors are and how much they owe. Of course, there is no way people can stay in control of debts they don’t know. Debtors are advised to make a master list of all their creditors and how much they owe each. Like the small businesses, they should include a category for recurring monthly bills, and those they need to pay in an instant. This way, they know what to prioritize and how to tackle the debts. Softwares like Quickbooks can help in keeping these records.
Think Outside the Box
Business owners understand that things can go wrong for their business and leave them stranded. As a result, they master the art of diversifying. What pushes most people into bankruptcy is job loss and minimal wages. The reason for this, in most cases, is the over-dependency on salary. To evade this, individuals must break free from the salary mentality and get ways to put dollars into their basket. The idea doesn’t have to be big. They can start by offering short tutorials, using talents to make money, or baking and selling products. The ideas are endless, and they can start small and grow with time.
Use Bankruptcy to Their Advantage
Even if people hate bankruptcy, insolvents can still use it to their advantage. During the automatic stay period, they can focus on generating more income and resetting their lives. That will make them more energized, apply the lessons learned from previous financial mistakes, and avoid bankruptcy.
Choosing a Good Bankruptcy Lawyer
Getting through with bankruptcy depends highly on getting an experienced Arizona bankruptcy lawyer familiar with the court, trustee, and the creditors to present the case. When making a decision, debtors should focus more on the value of lawyer’s services than their prices. It’s important because bankruptcy is complicated, involves many components, and getting an attorney who understands the Arizona code of conduct is a plus to winning the case.
