Bankruptcy may not always be a viable option when you are trying to deal with your finances. If your debts are mainly back taxes and student loans, you won’t be able to discharge those debts in bankruptcy. Your best choice is to start organizing your finances, and develop a plan to start paying back your secured debts one step at a time.

Organize Your Finances

Know Where You are Spending Your Money

Your first step to organizing your finances is to figure out where you are spending your money. If you make enough money to cover your bills every month, but you find yourself still falling short, organization is your problem. When you don’t have enough income coming in to cover your expenses, your situation is completely different.

Know What You Have Every Month in Income and Bills

Avoiding Bankruptcy with a Monthly Budget PlanStop ignoring the bills piling up on your desk. Pay attention to what comes in, even if you can’t pay it right away. Look at your monthly income, and know what you have to spend every month on bills. If you begin to see that there is simply not enough money to cover your debts, you may need to find other ways to bring in some extra income.

Pay Off Higher Interest Debts First

When you see that your debt is beginning to increase, it’s time to pay off the higher interest debts first. Pay the minimal payments on everything but your highest interest debt, and then put whatever you have left to pay bills on the high interest one. This will lower your overall debt, even if your other bills aren’t going down yet. Once the highest interest credit card is paid off, start with the next one.

Talk With an Attorney to Discuss Your Options

If you are considering bankruptcy because of rising debt and an inability to pay, you can talk with Clark & Washington at 770-824-3108 to see what your options are. You may find that by simply restructuring your debt, you will be able to pay off what you owe without filing for bankruptcy.

Our attorneys have extensive experience helping clients through the bankruptcy process . Contact us to set up a free bankruptcy consultation.