Whether you are trying to pay off debts before or after a bankruptcy filing, there are a number of things you need to do to avoid mistakes along the way. Over 94,000 people file for bankruptcy in the state of Florida each year. For those who file for Chapter 13 bankruptcy, finding a way to make the payments they have agreed on to their creditors is a must. Neglecting to pay these debts may lead to the need for a second bankruptcy filing. Below are some of the things you can do to make yourself a lean and mean debt paying machine.
Having a Plan of Action is a Must
If you try to pay off your debts without a detailed plan in place, you will usually have a variety of problems along the way. You need to sit down and figure out what you have coming in and what you have to pay each month. Putting this type of information on paper is a great way to see where corners can be cut and what can be done to eliminate wasteful spending. If you have problems trying to work up a budget, then you may want to seek out some help from an accountant in your area. They will be able to help you make the tough financial decisions needed to get you on firm ground regarding your finances.
Avoid Getting New Lines of Credit
When trying to get yourself out of a financial hole, you will also need to avoid getting any new lines of credit. If you insist on getting new credit cards, you will only be hurting yourself in the long run. Your main focus needs to be meeting the debt payment obligations you currently have. Neglecting to put focus on this will lead to a variety of problems. During the Chapter 13 bankruptcy filing process, you will be able to speak with your lawyer about the payment terms you feel comfortable with. You need to be upfront with them about the amount of money you make so they can help you get a payment plan that does not overwhelm you each month.
Asking for Renegotiated Payment Terms When Needed
If you find yourself struggling to pay your debts each month, there is no shame in reaching out to your creditors to see if they can renegotiating the current plan you are on. Usually, creditors would rather renegotiate current payment terms rather than going after you in another bankruptcy case. If you are unsure about how to approach your creditors, you need to seek out some help from a lawyer. They will be able to reach out to the creditors on your behalf and get you lower payments that you can easily manage.
If you are in need of help with your bankruptcy filing, the team at Badgley Law Group is here to help. You can reach us at 407-706-3474 to schedule a consultation with a member of law firm.