Advice From a Bankruptcy Lawyer on Staying Financially Stable

Filing bankruptcy is something that no one wishes to do. The term itself has terrifying connotations, and many people get scared at the mere thought of having to admit to such a process. However, sometimes filing bankruptcy is necessary to get back on the right track. Whatever your situation may be, the bankruptcy lawyers at RGG Law want to make sure you are practicing healthy financial planning so that you do not accumulate an excess amount a debt. Here are some fundamental guidelines for staying on track with your money management.

Create a Budget

You’ve likely been told to “create a budget” too many times to count. However, this is among the most essential and foundational aspects of staying financially stable. It may take some time to figure out, but a budget will benefit you immensely down the road. To create an effective budget, simply identify the amount of income you make and allocate a certain amount to your regular expenses so that your necessities are covered. Our bankruptcy lawyers recommend not exceeding your pre-determined limits as this is how debt is created.

Set Aside an Emergency Fund

In addition to making a financial plan for your liabilities, it is also beneficial to devote a certain amount of money to an emergency account, which will be there for backup if something extremely urgent arises. Our bankruptcy lawyers advise having around $1,000 for this cushion fund, but this can, of course, vary on a case-by-case basis. Simply having any sort of money set aside for unexpected expenses will help you avoid rapid debt.

Get Rid of Your Credit Cards

Abusing the power of credit is a frequent way people find themselves filing bankruptcy. Therefore, if you are in an extreme crisis, it is best to get rid of any credit cards you may have altogether. In doing so, you will be much less tempted to spend money on items you don’t need, and you will stick to your aforementioned budget that our bankruptcy lawyers suggested having.

Sell Unneeded Items

In essence, this is similar to declaring Chapter 7 bankruptcy without the urgency and with a bit more flexibility. Our bankruptcy lawyers are not saying to sell everything you own, but you should definitely get rid of any outrageous leisure goods. Got a jet ski sitting in your garage? Sell it. Perhaps you have a surplus of old clothing you don’t wear anymore just collecting dust in your closet. You might as well make some money off of it. This is a quick and easy way to build up some funds if you are in a tight situation.

Contact the Bankruptcy Lawyers at RGG Law for More Advice

We realize that everyone’s situation is different, and that’s why our disability lawyers are here to guide you through the decision-making process for your conditions. Sometimes filing bankruptcy is a necessity for your circumstances. If so, look no further than the experts at RGG Law to grant you the help you need. Contact us at 417-864-4700.