Steps You Can Take to Protect Yourself from Bankruptcy

• David Kohm


• 15 Feb 2013

Thanks to an economy that has been struggling for what seems like ages, many Americans have experienced financial problems. Keeping one’s personal economy above sea level is an undoubtedly difficult task when the economy of the entire country is slow. Of course, it is possible to get your finances in line, even when the national economy is experiencing issues. But it does take considerably more effort, and you may have to shed old habits and adopt new ones.

Getting your finances in order can help you avoid declaring bankruptcy. If you do eventually need to declare bankruptcy, you can depend on the services of an experienced and resourceful Arlington bankruptcy attorney from the Law Offices of David Kohm. But using some bankruptcy protection strategies can help prevent the necessity of such measures.

Perhaps the most important strategy to employ in protecting yourself from bankruptcy is going cash-only to the fullest extent possible. Although it can obviously be difficult to make every transaction—and particularly large ones—in cash, cutting down on credit purchases can help keep you in control. Having to produce cash for transactions all of the time may also help limit your spending because you will only be able to purchase something worth what you have on hand. Making fewer, less expensive expenditures will also leave you more cash available for paying bills.

Another important consideration: pay what you can now, rather than saving up and delaying payment. It’s no secret that debt collectors won’t take no for an answer. But sometimes you can avoid dealing with them by showing companies you are doing what you can to pay as much as you can. Providing some money that you owe prior to a deadline may persuade some creditors to hold off on demanding a full payment. Explaining why you can only pay a certain amount can help creditors understand your situation, and they may allow more flexible payment arrangements once they see that you simply cannot meet the original setup.

The bankruptcy process is a time-consuming and serious one, so doing all you can to avoid it is important. But if you cannot, be sure to give yourself the best ally you can—an experienced bankruptcy attorney from the Law Offices of David Kohm. Call 817-204-0900 for bankruptcy help today.