Welcome to Jimison Bankruptcy Law Articles
Managing your finances isn’t always easy, especially when money is tight. When an unexpected payment pops up, your entire financial backdrop may go haywire, and if it isn’t kept under control soon, your debt may skyrocket, pushing you down into a hole hard to escape from. If you are willing to adjust what you spend your money on and your daily lifestyle, it is possible to avoid the dreaded bankruptcy. However, if nothing else works, there are several bankruptcy methods available in the state of California, and just because you file doesn’t mean your life is over. It’s just a slight setback you are able to work out off.
In order to prevent bankruptcy and debt, you must watch your finances closely. It’s easy to say “don’t spend more than you make,” but this is essentially how to stay out of debt. If you have a tight budget you need to cut out expenditures not necessary to live. This includes cable, gym memberships, going out to fancy restaurants and purchasing expensive clothing. Sure, these tasks are bound to make you feel better about yourself, but if it forces you into debt and eventually bankruptcy, it isn’t doing you any good at all. If you can’t live without television, most programs are available online for free. Working out doesn’t require an expensive gym membership, you just need to stay active and perhaps a set of free weights. Cooking a nice meal at home is often more tasty and cost effective than any meal you can purchase at a restaurant, and most grocery stores have a nice selection of clothing that should fit your personality.
If you already have debt, it is important to begin paying it down. Of course, typically there are multiple loans and payments you must make. Look at the interest rate on all the bills and pay the most towards the highest interest rate. Even if this is not the highest bill, paying this off saves you a good chunk of change. You may also be able to consolidate your debt in order to make one monthly payment instead of several to a variety of creditors.
If you must file for bankruptcy in the state of California you have two main options. The first is Chapter 7. Chapter 7 liquidates all your non-exempt property in order to pay off your debt. After four months the process is over and the debts are wiped clean. The second option is Chapter 13. This is for people who want to keep their non-exempt property as it allows you to pay off the debt over a three to five year period. This option is only available to people with a steady income.