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Alfred Abel Discusses 4 Ways to Reduce Your Costs and Avoid Bankruptcy

Ways to Avoid Bankruptcy by cutting costs- scissors cutting an image of the word costs on white background

When you visit our Chapter 13 bankruptcy attorney in Philadelphia to discuss filing for bankruptcy, we will help you learn what your options are. Whether you are considering Chapter 13 or Chapter 7 bankruptcy, the process can be disruptive and affect your credit for several years, so in a perfect world, we all want to avoid this consequence. Consulting a Chapter 13 bankruptcy attorney in Philadelphia early, before things become too overwhelming, is a good idea. Sometimes we can suggest alternatives.

Four Ways to Improve Your Bottom Line and Avoid Bankruptcy

If you are already in an overwhelming situation, the time to seek a consultation is now. Delinquencies can hurt your credit as much as a bankruptcy if they go unresolved. However, if you are just under some financial stress, you might be able to utilize the following cost-cutting or revenue-boosting ideas.

  1. Sell unnecessary assets such as a second car or second home
    Selling off property can hurt, but can be a way to avoid bankruptcy if you can pay off some of your debts. After all, some proceedings -such as Chapter 7- involve these assets being sold anyway, at auction. In addition, if you make the sale yourself, you can potentially make more money to use toward bills.
  2. Refinance your home, car, or other major purchase
    In the event you have too many monthly payments that are beyond your ability to pay, you may be able to refinance them and lower those payments. However, know that you will have better luck with this tactic if you still have a relatively good record of payments. Too many missed payments will make banks less flexible when working with you.
  3. Consolidate school loans
    In many cases, consolidating your school loans can be an excellent way to cut your monthly bills. School loans usually cannot be discharged in bankruptcy, so anything you can do to lower your monthly payments on them could help.
  4. Cut down on subscriptions
    We tend to have so many subscription-based services today, and they can really add up. Netflix, Amazon, magazines, country clubs, gyms… the list can be endless. Take an inventory of your subscriptions and see what you could save by canceling some of them until you have your finances back in order.

Consult with An Experienced Chapter 13 Bankruptcy Attorney in Philadelphia

No matter your financial situation, you have options! In overwhelming financial circumstances, Chapter 7 and Chapter 13 offer the chance to start over. Contact us to schedule a consultation with Alfred Abel Law Offices to learn if bankruptcy is the right choice for you.