subject: Bankruptcy, How To Prepare For The Worst [print this page] More than ever before, people are being forced to declare some type of bankruptcy. We all know that the economy is rough right now, and though it is likely to turn around before too long, I know that if you are one of the millions that have filed bankruptcy it has already been too long. With the job market shrinking and the cost of living growing, it is a pretty dire forecast right now. These changes are putting even the most financially conservative folks right in harm's way.
So what is the best way to avoid having to file some type of bankruptcy? Really, there is no one good answer. If you have lost your job, and are scrambling to find another one, the best that I can tell you is to keep looking. Though unemployment is on the rise, there are already some indications in the stock market that things are going to turn around soon. While you are looking for the next step in your career, don't be afraid to take a job that may not be your dream position, in order to stave off financial ruin.
If you are one of the lucky folks that still has a job to call their own, it does not mean that you are completely in the clear and in no danger of having to file some type of bankruptcy. Be conservative in your expenses and use credit wisely and sparingly. So many folks are defaulting on their credit cards and loans right now that all lenders are definitely feeling the burn. People across the nation are watching their minimum monthly payments sky rocket, which is seriously impacting their monthly budget. Keeping your debt to income ratio as low as possible will help reduce the odds of a change in payment completely derailing your financial stability.
The last bit of advice that I can offer you to help avoid or work your way through any type of bankruptcy, is to seek out the counsel and advice of a good bankruptcy or financial planning attorney. With experience navigating the pitfalls and disasters that can await just about anyone in bankruptcy, they can help you to steer clear of the worst dangers and keep you on a sound and secure footing. Remember that it is possible to recover from bankruptcy if you do wind up having to go that route, and a good attorney can help you regain your footing sooner, rather than later.
