What is bankruptcy, and how can it affect your financial future? If you’re a 20-something, filing for bankruptcy in Arizona may be far from your mind, but it’s important to make financially healthy decisions to avoid getting into this situation in the future. Here are a few tips for how to avoid bankruptcy.
1. What is Bankruptcy? – Knowledge is Power!
As a 20-something you should understand what bankruptcy is. This is a step you can take to get out of debt but it doesn’t solve everything and will likely negatively affect your credit for quite some time. Fully understanding bankruptcy and its consequences can demystify the process and give you motivation to not see it as an option unless it’s truly a last resort.
2. Look at the Long-Term
If you’re wondering how to avoid bankruptcy, you need to look at your finances with a long-term view. Instead of panicking over debt now, think about what you can cut, aggressively pay, or otherwise adjust to deal with debt. If you look at it as something you can fix bit-by-bit instead of feeling like you must solve it all immediately, it can be easier to deal with financial strain.
3. Talk to a Lawyer
Feel like your finances are out of control? Filing for bankruptcy in Arizona isn’t the only option, and if you speak to a bankruptcy lawyer in Glendale, AZ you can learn more about what programs and choices are out there for you.
4. Avoid Credit Card Use
Credit cards are tempting but they can quickly put you on the path to filing for bankruptcy in Arizona. Try to pay down cards aggressively and then only use them in a manner that ensures you can pay off the balance in full each month.
5. Increase Your Income
Whether it’s a second job, something that pays more, or picking up overtime at work, finding a way to increase your income is a good way to keep your finances in good shape. However, to avoid filing bankruptcy in Arizona, don’t increase your spending to match any new income increases! If you’re looking at how to avoid bankruptcy, you should be using the extra funds to pay down debt, or save for the future if debts are paid off.
This blog is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this blog. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.