Tips Series: How to Avoid Bankruptcy

Check out our latest article on Avoid Bankruptcy

Although bankruptcy offers some people a clean slate, it is by no means an easy solution. Bankruptcy will destroy your credit and may possibly force you to sell your assets. It could also affect your future employment. In addition, 2005 bankruptcy reform laws made it more difficult to file for chapter 7 bankruptcy, and limited other bankruptcy rights.

If you want to preserve your credit, you will be much better off if you do whatever you can to avoid bankruptcy. Although it’s not easy, it’s worth the effort. Follow these steps to avoid bankruptcy.

Total All Your Debts

Only once you have a true picture of your debt can you take the next steps to avoid bankruptcy. Gather every bill, every statement, and every document that has an effect on your financial situation. Total up both your debts and your assets. Include your mortgage as a debt and the value of your home as an asset.

Now break down those debts into good and bad categories. Good debts are home loans and student loans. Bad debts are credit card debts, personal loans, high-rate car loans, and medical bills.

You should also list the interest rates and minimum payments for all your debts.

Reduce Your Expenses Now total up all your expenses – everything you spend. Even the you spend in the vending machine at the office should be included. Divide those two figures into necessities and non-necessities. Necessities are items you need to survive, like groceries and housing.

Non-necessities are nice things to have, but which you don’t need, like that vending machine candy bar or designer sneakers.

Add up the minimum payments on your debts and the monthly cost for necessities. This is the minimum amount you need to cover your bills for the month. If you don’t earn enough to cover them, then you need to find a way to reduce your minimum debt payments or necessities. Even little steps like switching from name brands to generics and canceling cable can help.

If you can cover your monthly bills, but aren’t making enough to pay down debt, then start cutting non-necessities until you free up enough money to reduce your debt.

Consolidate Debt

If you have multiple small debts, getting rid of any one of them can be a challenge. By consolidating debt, you not only reduce the total number of bills and minimum payments you owe, but you also reduce the interest rate. So you can reduce your debt faster.

In addition to consolidating debt, you can get out of debt faster by paying more than the minimum payment every month. Funnel as much money as you can towards your debt every month.

Consult a Credit Counselor

Contact a reputable credit counselor if you need help totaling your debts, finding ways to reduce expenses, or consolidating debt. In addition to teaching you money management, they can help you qualify for a consolidation loan, whether it’s in the form of a home equity loan or a personal loan. In some cases, they can help you set up a debt management program. Although there are fees, it may be what you need to avoid bankruptcy.

Consider Debt Settlement

If your debt vastly outweighs your income, then you may need to consider debt settlement. A credit counselor may be able to negotiate with your creditors to reduce the balance owed. Although debt settlement will ding your credit, it’s not as big a hit as bankruptcy. Debt settlement shouldn’t be taken lightly, but it is a way to avoid bankruptcy if you’ve exhausted all other options.

No matter how you got into debt, you can get out of it without resorting to bankruptcy. Although there are situations where it’s the only reasonable option, it’s best for your credit and your financial future to avoid it.

For more articles on avoiding bankruptcy, visit bills.com

With a government-imposed deadline for massive restructuring less than a week away, Chrysler LLC and Treasury Department officials are still holding out hope that they can reach deals to keep the troubled automaker out of bankruptcy courts. (April 24)
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Question by I’m gonna start another riot: Why are more California school districts edging closer to insolvency, state says?
An immediate effect has been increased teacher layoffs. Fourteen districts in the state are classified as in especially dire condition, including Lynwood Unified School District in Los Angeles County.
An increasing number of California school districts are edging closer to financial insolvency, state officials reported Tuesday.

One immediate effect has been teacher layoffs — probably in the thousands, although neither state officials nor the California Teachers Assn. have final numbers.

Since the beginning of 2010, the number of school systems that may be “unable to meet future financial obligations” has increased by 38%, according to the state Department of Education.

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“Schools on this list are now forced to make terrible decisions to cut programs and services that students need or face bankruptcy,” said state Supt. of Public Instruction Jack O’Connell.

Of the state’s 1,077 school districts, 14 are classified as in especially dire condition. They are unlikely to avoid bankruptcy based on their current approved budgets. L.A. County has one such system, the Lynwood Unified School District, officials said. Other districts in this category include Hayward Unified in Alameda County, Vallejo City Unified in Solano County and Natomas Unified in Sacramento County.

An additional 160 school systems have a “qualified” financial outlook, meaning that they are at risk although probably not in danger of immediate bankruptcy. L.A. County districts in that situation include L.A. Unified, Burbank Unified, Culver City Unified, Glendale Unified, Inglewood Unified, Montebello Unified, Norwalk- La Mirada Unified, Pomona Unified, Santa Monica-Malibu Unified and South Pasadena Unified.

About 26,000 teachers were notified in March that they might be laid off, according to data collected by the California Teachers Assn. At least 9,000 of those notices have been rescinded so far. Last year also brought teacher layoffs, leading to a decline of about 15,000 in the union’s membership. The state has about 300,000 teachers.

Non-teaching employees also have been hit hard. Thousands have lost jobs in Los Angeles Unified alone. Many of those still working have experienced pay cuts, while students have to deal with larger classes, a shorter school year and decreased services.

The education portion of the current budget proposal by Gov. Arnold Schwarzenegger could result in additional layoffs, although other sectors of governments have faced even steeper cuts.

http://www.latimes.com/news/local/la-me-school-finances-20100630,0,2651372.story

If illegals are paying taxes how can this be ?

Best answer:

Answer by Government Union Moron
Government Union Thugs like ME!!!!!!!

And there’s not a darn thing you can do about it. I’m going to retire at 55 on your dime with 90% of my wages and gold-plated benefits for life!

HAHAHAHAAHA!!!!!!!

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