Ways to Avoid the Need to File for Bankruptcy

July 13, 2021 By: Carrie Weir

Simple Steps You Can Take to Minimize the Risk of Financial Problems

U.S. bankruptcy law was enacted to provide individuals with an opportunity for a fresh start. While there should be no stigma in taking advantage of those laws, the bankruptcy process can be arduous and time-consuming, something you’d like to avoid, if at all possible. Here are some simple strategies for minimizing the need to seek protection in bankruptcy.

Make Certain You Have Adequate Health Insurance

An unexpected injury or illness can put you thousands of dollars in debt in no time at all. Medical bills have long been the single biggest contributing factor to personal bankruptcy filings in the United States. If you have health issues, you may want to give priority to paying your insurance premiums on time in order to ensure coverage doesn’t lapse. Furthermore, while it’s a fairly common practice for some healthcare providers to write off some debt, it’s unlikely you’ll have it all waived. A single event can put you in debt for years.

Protect Your Ability to Work

If you need a motor vehicle to get to and from work or to do your job, your car payment needs to be a priority. A lender can repossess your vehicle without your knowledge, leaving you with limited means to get to and from work. If you can’t work, you can’t pay your bills.

Minimize Purchases on Credit

The other major cause of personal bankruptcy is excessive and unmanageable credit card debt. When you’re struggling to meet your obligations, putting expenses on a credit card won’t help you solve the problem. In fact, it will only make it worse, as you’ll owe the amount of the purchase plus interest.

Don’t Borrow Your Way Out of Debt

Borrowing money to pay your current bills rarely works. At some point, the principal will become due with interest. It may work if you know you have a windfall coming…an inheritance or a personal injury damage award. Most of the time, though, you’re just digging the hole deeper.

Contact an Experienced Rockwall, Texas, Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.