Most people avoid bankruptcy like the plague, and for good reason: it’s the financial equivalent of hitting rock bottom.
However, running a tight ship where your assets and liabilities are concerned is much easier said than done. In our years of experience at Sherman Law Firm, P.C., we’ve learned a lot about what it takes to avoid falling into impossible debt.
For starters, the most important thing when tying yourself to any loan obligation is to have a solid plan. Think years ahead when considering any major debts like a mortgage or car loan, and take all your present and expected spending habits into consideration.
Most people who have to suffer through bankruptcy do so because of impulsive or I’ll-considered borrowing –it’s a very common, but easily avoidable problem.
Likewise, be perfectly honest with yourself when drafting your plans. Never underestimate the amounts you are likely to spend over the term of a loan, and always take the more pessimistic mindset when planning around emergencies. You’ll be glad you did when you hit a major financial speed bump.
Despite its best efforts, financial literacy in America often overlooks one crucial step: shopping for lenders. Many homebuyers aren’t aware, for instance, that you can take your time searching the market for a loan amount, down payment, and interest rate that works best for you –you aren’t obliged to accept the first quote that’s given to you.
Finally, while we’re on the subject of lenders, one of the simplest ways to Avoid bankruptcy is to ask questions. You’d be surprised at how many people fall into the financial muck because they didn’t understand the facts behind what they were getting into.
Most people behind the counter want to bond you into loan arrangements where they profit from, knowing the courts will likely take their side in the event of bankruptcy; asking questions can prevent them from letting added payments or unfavorable terms slip past your notice.
If you find yourself unable to avoid bankruptcy, don’t panic. Keep a clear head, and call a professional to help you bounce back.
You can call us at Sherman Law Firm, P.C. to schedule a meeting with our attorney so we can help you find the best options for your situation.