After consulting with an attorney, the decision is made to file a Chapter 7 in Lawrence KS. Once the bankruptcy is approved by the court, the debtor has the opportunity for a fresh start. Even while the petition is making its way through the system and the debtor is cooperating with the court trustee, it is possible to begin preparing for life after bankruptcy. Here are some points to keep in mind.
Put That Financial Training to Good Use
With a filing for Chapter 7 in Lawrence KS , the debtor takes on the responsibility of attending court approved classes that have to do with financial management. The goal of those courses is to equip the debtor with the knowledge and skills needed to avoid bankruptcy in the future. In a sense, those classes can be viewed as an investment in a better life to come. As the bankruptcy is under review, the debtor can begin the task of creating a functional household budget. This will make it much easier to live within his or her means, and reduce the potential for accumulating a great deal of unsecured debt. The right type of budget will also allow the debtor to set aside some funds in an interest bearing account each month. Even if the amount is modest at first, every penny represents a little more financial security.
Living on a Cash Basis
Seek to get by paying cash for day to day expenses. Credit cards may be used for emergencies, but the balances must be paid off quickly. Even if something like an essential car repair comes up, it is important to develop a plan to pay off that balance in two to three months. At times, this can mean making do with what is at home rather than running out to buy something. In the long run, this approach will help the debtor get to a point where saving for things he or she wants will become second nature. For people who find themselves with more debt than they can manage, contact Joe Wittman today. Doing so will be the first step in protecting the home and also securing help from the courts in receiving the chance for a fresh financial start.
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