Bankruptcy Mediation Lawyer Massachusetts: Prevent Bankruptcy With These 4 Tips
Bankruptcy is an effective way to resolve some serious debt situations, but it will affect your credit score as well as business creditworthiness (in a corporate bankruptcy). Bankruptcy filings have increased by 43 percent in the last 10 years because of the growing personal and business debts. Here are a few useful tips from an experienced bankruptcy mediation lawyer Massachusetts to help you prevent bankruptcy.
Cut Down Expenses and Prepare a Budget
To improve your financial situation, you should begin by determining how much is your monthly expenditure and which are the areas where you can possibly cut back the expense. Prepare a meticulous budget to bring your spending under control.
Minimize the use of credit cards because it usually creates the temptation to spend more. Start using a debit card for all your purchases or get your cell phone linked to a cash account for payments. Discuss your financial situation with a bankruptcy mediation lawyer Massachusetts if you believe your debts are going out of control.
Some of the big-ticket expenses can potentially reduce include:
- Move to more affordable accommodation
- Drive a basic or used car
- Avoid any vacation plans for some time
- Sell your motorbike, RV, or boat
- Minimize expenses on alcohol and expensive dine-outs and parties
Focus on Ways to Maximize Your Earnings
Merely reducing expenses may not be enough to get out of the debt trap because certain essential expenditures are unavoidable. If you are without a job, start looking for a new job or consider starting a skill-based online business that involves no capital investment. If you already have a job, consider taking up a second job or a side hustle. Your spouse should also be prepared to do the same if you are married.
Explore the possibility of obtaining government assistance for food security, health care, mortgage forbearance, and other forms of financial aid. If the pressure from your creditors is too much, discuss your options with a bankruptcy mediation lawyer Massachusetts.
Debt Consolidation or Debt Settlement
One of the tools for avoiding bankruptcy is debt consolidation. If you qualify for a low-interest loan, you can maximize this option to pay off the high-interest debts (such as credit card debt) first. Another possibility is debt settlement, where you enter into negotiations with your creditors to reduce the debt.
Unlike debt consolidation which focuses on reducing the total number of creditors, debt settlement deals with debt forgiveness and resolution. Evaluate the feasibility of these options with the help of a bankruptcy mediation lawyer Massachusetts.
Bankruptcy Mediation is an Option
If your creditors are distrusting or angry, the debts are unmanageably high, or you are interested in eliminating or reorganizing your debt, bankruptcy may be a reasonable solution for you. An experienced bankruptcy mediation lawyer in Massachusetts can help in bringing you and the creditors on the negotiation table, mitigate conflict and objections from both sides, and assist you and others to arrive at a compromise solution.
Choose a Dedicated Bankruptcy Mediation Lawyer Massachusetts
At Shapiro Mediation Services, seasoned legal professional Anna Shapiro, Esq. and her team can help minimize the brinkmanship between you and your creditors in a bankruptcy. You can achieve your goals through bankruptcy mediation while avoiding the high costs of litigation. Call us at 617.765.1040 for a consultation or fill out this online contact form.