Being proactive may prevent bankruptcy

While bankruptcy may quickly eliminate or reduce an individual’s debt load, it is not an easy way out for Florida residents who are struggling to pay their bills. Those who file for Chapter 7 bankruptcy will see it remain on their credit report for an entire decade. However, it may be possible to avoid filing for Chapter 7 or Chapter 13 bankruptcy by being proactive when it comes to financial issues.

Individuals should refrain from credit card spending whenever possible. Consumers should consider themselves unable to afford a credit card purchase if there isn’t enough money coming in to pay it off by the end of the billing cycle. The best reasons to use a credit card are to accrue perks or because it is easier to charge a purchase than pay cash when conducting the transaction.

This should be part of a strategy to budget and live below one’s means. Holding back at least 10 percent of each paycheck makes it easier to pay an unexpected car bill or other surprise expenses. Creating a budget makes it easier to see how much money is coming in, how much money is going out and where that money is being spent. From there, adjustments may be made in the event that an individual is spending more money than he or she makes.

Bankruptcy does, however, have its advantages, and it may be a quick and relatively easy way to discharge some or all unsecured debt. There are a variety of eligibility and other requirements that a lawyer can outline when describing the forms of debt relief that may be available to a particular client.