How Can I Avoid Bankruptcy?
By Andy Miofsky, Illinois Bankruptcy Attorney on Feb 14, 2007 in General Bankruptcy Information, Illinois
The word bankruptcy originates from a Latin phrase meaning broken table. It connotes a time when merchants plied their wares on tables in open markets. When a merchant became insolvent and could not pay the bills, the table was broken and the business was closed. See Rachel Foley’s article, Origin of the word bankruptcy.
Here are some common sense principles to help you avoid bankruptcy:
1. Try to increase your income by getting a better paying job, a raise, working more hours, or taking a second job.
2. Create a budget, a list of everything you spend during the month, and try to eliminate some expenses.
3. Maximize the power of your money. Make payment to higher interest accounts to lessen the monthly finance charges before you pay lower interest accounts.
4. Quit spending money you do not have and cannot afford to pay back. Use credit in emergencies and not for ordinary everyday expenses.
Remember, if you owe more now than you did last month, your financial table is broken and your spending habits are going out of business. Unless you change, you will soon be a candidate for bankruptcy. Be sure to read Mistakes To Avoid Before Filing Bankruptcy.
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