Budgeting vs. Bankruptcy?
By Carmen Dellutri, Attorney at Law on Aug 14, 2007 in General Bankruptcy Information
I interview many individuals who are looking to file bankruptcy. Prior to filing for bankruptcy, I want to explore all other options for these individuals. One issue that arises is household budgeting. I do not request that people put together a budget prior to coming in for a free bankruptcy consultation; however, I do request some basic information on the cost of electric, insurance, etc. You can tell with a quick glance at the bankruptcy consultation forms that many individuals who have no idea what their monthly costs really are.
Almost everyone knows what a budget is, but almost no-one has put one together. I’m sure the fear of putting together a budget when there is no money left over is at the heart of the issue. Although I never ask, the question in my mind is: How do you know if you are exceeding your monthly budget if you don’t know how much things cost? Think about the issue for just a moment. If you do not have enough money to pay your bills, you should be writing down where each and every cent goes each day, week and month. This will help you focus on your financial issues. I’m not advocating that everyone live on a budget. I am saying that knowing where and how much of your money is going to entertainment or food could make you think differently about the future.
After bankruptcy, people are really forced to live within their budget because they no longer have the credit cards to rely on, and I’ve come to find out from past clients that it is quite a bit easier to do than they originally thought. Fear prevents people from doing many things in their lives. Don’t let fear remove your chances of becoming financially free in the future.
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