Bankruptcy Lawyers in Philadelphia Offer Tips to Help you Understand and Avoid Bankruptcy
Many NBA players file for bankruptcy within five years of their professional career ending. What is the cause of this phenomena? Taxes? Fraud? You would be surprised to know that none of those are the primary reasons. Instead, the cause is poor planning and foresight on the part of the players. Players should have spoken to bankruptcy lawyers to sort out their finances before, during, and after their professional career. Take these stories as a cautionary tale; if million-dollar basketball players can be affected by bankruptcy, anyone can. A Philadelphia Bankruptcy Lawyer from Alfred Abel Law Offices provides some tips to understand and avoid bankruptcy.
Who is at Risk of Bankruptcy?
Anyone who comes unexpectedly into a large amount of money, like winning the lottery or securing a professional sports contract, is in danger of mismanaging the money.
Bankruptcy is no inevitability, even if your debts exceed your assets (the classic definition of “bankrupt”). If you find yourself in a tough financial situation, you would be well-served by bankruptcy lawyers in Philadelphia who could walk you through various strategies to avoid bankruptcy. If the eventual outcome is still bankruptcy, the sooner you receive guidance, the better the results will be for you.
Strategies to Avoid Bankruptcy
The first thing you should do is begin cutting your expenses. Write a list of “needs” versus “wants” to identify where you can cut costs and save money. You may also be able to negotiate new payment terms with creditors. Some creditors are incentivized to compromise, because if you declare bankruptcy, they risk losing all their investment.
Pre-emptively selling some belongings or refinancing your mortgage might enable you to pay off sufficient debts to avoid bankruptcy.
Consequences of Bankruptcy
In the event these strategies are insufficient to rescue your finances, then you may find that filing for bankruptcy is the best solution. However, no edict says that bankruptcy is the end of your financial or business career. Bankruptcy is a legal mechanism that allows people to reorganize their debt and get a fresh start.
Under bankruptcy rules, you may be required to:
- Obtain credit counseling.
- Make payments to creditors.
- Get financial-management advice.
Bankruptcy will show up on your credit report however, in most cases it has little affect on your credit score, because other financial problems have already damaged your credit score before you consider bankruptcy. The good news is that once you complete a bankruptcy, you will be able to begin rebuilding your credit under an easy to follow program.
Call Alfred Abel Law Offices for Experienced Bankruptcy Lawyers in Philadelphia
Alfred Abel Law Offices is staffed with knowledgeable and skilled bankruptcy lawyers in Philadelphia. We prepare our clients with information about the bankruptcy process. and we take care of the details that can make bankruptcy confusing. To schedule a consultation, contact us today.