The bankruptcy laws were established for a good reason—to give folks a new start after encountering unforeseen or unmanageable financial challenges. There are some things that you can do to minimize the risk that you’ll need to file for bankruptcy protection.
Make Certain You Have Health Insurance
In many instances, the principal reason a person files for bankruptcy protection is to discharge medical bills. Because those types of debts are unsecured, they can be permanently discharged in a Chapter 7 proceeding, but most of the anxiety, stress and headache that come with past due medical bills could be avoided if you carried a policy of health insurance. At least as the law stands now, you don’t have to be employed anywhere to obtain health insurance—it’s available through the Affordable Health Care Act. And when you are trying to determine how to allocate a limited amount of money to your needs, health insurance should be a priority. Though many providers will write off some percentage of the costs, if necessary, you may still wind up with medical bills that could take years to pay.
Don’t Borrow Out of Desperation
Often, when you are experiencing financial challenges, the first plan is to borrow you way out of difficulty. That almost never works! Unless you encountered problems because you were temporarily unemployed and you have secured a new and well-paying job, chances are you won’t be able to afford to make loan payments on top of your current obligations. And because you’ll likely have less than optimal credit, you will probably end up paying significantly higher interest rates, another way your dollars will be eaten up.
Don’t ever consider a payday loan or a title loan as a way to get through financial problems. Many of them have effective interests rates in excess of 100%, so you’ll end up paying double for the money you get. Typically, too, the money gets taken directly out of your account when you get paid, so you won’t have any opportunity to negotiate a new repayment date, if any unforeseen contingency arises.
Always Make Your Car Payment
Unless you work from home, walk or take public transportation, your car is your most valuable asset. If you don’t have wheels, you can’t get to work. If you can’t get to work, you can’t earn money to pay your bills.
Contact Neuner & Ventura, LLP
At Neuner & Ventura, LLP, we know that the bankruptcy process can be intimidating and confusing. We offer a free initial consultation to every client. For an appointment, call our office at 856-596-2828 or send us an e-mail. We do, however, reserve the right to charge a fee to review any work done by another attorney. Evening and weekend appointments are available upon request.
Representing Clients across South Jersey