Financial Tips to Avoid Bankruptcy During the Covid-19 Pandemic
Most Americans have debts. However, during the Covid-19 pandemic, many people’s financial situation worsened because they were forced to stop working. Fortunately, there are several things that you can do to stay financially stable and avoid bankruptcy.
Cut Your Expenses
It would help if you tried to trim your expenses as much as possible. If you spend less money on expenses, you will be able to put more money towards paying your bills or paying off your debts. Ordering takeout and buying unnecessary clothing are some of the things that you will need to cut out of your budget.
It would help if you also tried to trim your living expenses. For example, you can save money on your electric bill by keeping the temperature on the thermostat at the same level, taking shorter showers, turning off your lights when you leave a room, and limiting appliance use. Remember, little savings add up over time. You can also save money on groceries by buying in bulk or using coupons.
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Make Sure the Basics Are Covered
Your necessary living expenses are utilities, food, and shelter. As Americans, we often take these necessities for granted until we are at risk of losing them. Covering your basic needs is essential for your physical and emotional wellbeing. You should make sure that all of your basics are covered before you pay creditors more than your minimum payments or file for bankruptcy.
Sell Everything You Do Not Need
You likely have some things in your home that you no longer need. Consider selling things like clothes, furniture, electronics, jewelry, or anything you don’t need or use anymore. It is easier to sell stuff online than ever before with platforms like Facebook Marketplace, Craigslist, and eBay. This will allow you to make extra money to help pay off your debt, but you can also declutter.
Negotiate with Creditors
It is an excellent idea to attempt to negotiate with creditors before filing for bankruptcy. Many creditors are willing to change your payment terms and reduce your interest rates. This can help you reduce monthly minimum payments and potentially save some money.
Prioritize Your Debts
It would help if you had a plan for paying off your debt. You should pay off the debt with the highest interest rate first. Make the minimum payment on the other debts. After that, you can pay off the next-highest debt.
Opt for Debt Management Services
Debt management is an alternative to filing for bankruptcy. You will receive financial counseling during the program, which will provide you with helpful information and guidance to pay off your debts. Just as a heads up, you won’t be allowed to open any new credit accounts during that time.
How to File for Bankruptcy During the Pandemic
You may not be able to leave the house during this time. However, if you decide that bankruptcy is the best option, then you can still do that. You can connect with a northern Kentucky bankruptcy attorney without leaving your home. Attorneys are available via phone, video chat, or email.
There are a lot of documents that you will have to fill out. However, the documents can be scanned and returned via email or completed and submitted electronically. You can also complete your debtor and credit counseling courses online.
If you need a bankruptcy attorney, we can help you. You can contact W. Ron Adams Law & Associates by visiting our website https://wronadamslaw.com/ or call us at (859) 727-1000. Our bankruptcy attorneys have years of experience and are happy to help you decide whether or not filing for bankruptcy is your best option.
LET OUR EXPERIENCE GUIDE YOU
Call to schedule your Free Bankruptcy Consultation!