If you are thinking about bankruptcy and looking for bankruptcy attorneys Plano TX, you are already taking the steps to a better financial future. However, once your journey is complete, beware the sobering statistic that of those who file for bankruptcy, about one in seven will end up falling into bankruptcy again. Of those who do end up filing a second time, most will do so within the first two to three years of their first filing. Be sure to avoid these three most common mistakes after your bankruptcy filing is complete:
Bankruptcy Attorneys Plano TX: Get To The Heart Of Your Debt
The fact of the matter is that people file for bankruptcy because they took on more debt than they could handle. For some people, this may have been due to a medical emergency that resulted in bills that diminished their financial resources. Or it could have been a business failure, an unwise capital investment, or a particularly nasty divorce. Whatever the reason, it comes down to spending more than they earned. It is crucial to investigate and evaluate your spending patterns once your bankruptcy is resolved. You should also be cautious about the new credit you take on after your bankruptcy. While your credit options will be limited, those that you do have will likely carry higher price tags. A default on this more expensive debt will send you back to bankruptcy even faster.
After Bankruptcy Plano TX: Refuse To Cut Corners
Involuntary credit is the term used to describe debt owed to the federal government, usually in the form of taxes or even child support. Owed income or taxes make the government the biggest single creditor for more second-time filers. You may be tempted to skimp on taxes or income owed when cash runs thin, especially when the consequences aren’t likely to catch up with you for a couple of years. But make no mistake — when it does catch up with you, few things match the debt-collecting power of the feds. All it takes is the garnishment of wages and the seizure of assets to send you right back to bankruptcy.
Bankruptcy Lawyer Plano TX: Have A Savings Plan
Second time bankruptcies are also commonly a result of a job loss, a sudden illness or a divorce. These unplanned and devastating events can pack a punch on your income and finances. While this may seem counter-intuitive, limiting your access to credit in times like this will keep you safer than if you turned to cards and loans to make it through. A robust savings plan is the ultimate fallback plan. Limiting your credit options also means you have less existing debt to compound your sudden emergency costs. A good rule of thumb is to stash three to six months of expenses in savings.
If you are currently experiencing a bankruptcy, our bankruptcy attorneys Plano TX can help. Get the expert help of Collins & Arnove by calling 972-516-4255. We can help the process go smoothly for you.
Collins & Arnove | Bankruptcy Attorneys Plano TX | 972-516-4255