San Antonio Bankruptcy Options

 Posted on October 18, 2013 in Bankruptcy

When bills start piling up and you don't have the income to cover them, life gets complicated. Most minds turn right to bankruptcy as a last resort, but there are other options.

Simple ways to avoid going into debt from Money Management include:

1. Have sufficient insurances. Many studies show that bankruptcies are often caused by medical reasons. When something out of the ordinary comes along, such as an unexpected surgery that is not covered by medical insurance.

2. Adjusting spending according to income. There are many items that people buy that could be exchanged for less expensive items and other items may not be in a new budget that is created to pay off debts.

3. Try to settle debts. Sometimes debts can be settled for less than the full value, which could be an important step in diminishing debts.

4. Create cushion of savings. When at all possible, put some money away in a savings account for rainy days. Try to maintain an amount equal to three to six months’ worth of living expenses. This can be a safety cushion for an unexpected change such as losing your job or an expensive medical emergency.

5. Manage your debt. It’s suggested to keep debt under 20 percent of income after taxes have been subtracted. When debts exceeds 20 percent, it tends to become much harder to manage and bankruptcy may be the best option.

If you have tried to maintain a low debt and simply cannot pay off the money that is due to your debtors, you may have to turn to bankruptcy to relieve you of your debts. Contact a Texas bankruptcy attorney before making any final decisions. An experienced lawyer can help you through the process in the best way.

Attorney Chance M. McGhee can help you resolve your debt issue in a San Antonio, Texas bankruptcy court today.