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Steps to Avoid Bankruptcy

Ways to Avoid Bankruptcy

Although bankruptcy may seem like an easy way out of a financial mess, it brings a whole list of credit problems and inquiries for many years to come. Bankruptcy wreaks havoc with your credit for seven to ten years. If you are starting to feel financial stress, try to avoid bankruptcy by following some of these suggestions from the Boca Raton bankruptcy attorneys of Padula & Grant, PLLC.

- Avoid spending – This may sound easier said than done; however, excessive spending does cause many individuals to seek bankruptcy. Review your credit card statements for revolving charges that can be eliminated such as subscription services that are not necessary. If you do have the urge to buy something frivolous that you do not need, step back and rethink the purchase. Pay cash for necessities to avoid an increase in debt on your credit cards.

- Consolidation – Combine credit cards or transfer balances to avoid duplicate monthly interest charges. Speak to a credit counselor recommended by someone you trust like your bankruptcy attorney or accountant.

- Get help from your creditors – Remembering that you are not alone in financial duress can be comforting, and give you the courage to call your creditors and ask for help. Having a setback like a job loss or medical bills should be explained to your mortgage company and other creditors. They may be able to come to a solution for repayment options that will work for you.

If you follow this bankruptcy advice, as well as other ones recommended by a professional such as your accountant or a bankruptcy lawyer, you can possibly avoid bankruptcy in the future.