Are You Waiting Too Long to Contact a Bankruptcy Attorney?
As a bankruptcy attorney in Tennessee, I find that clients who come into my office have typically waited longer than they should have to make that first call. Maybe this is the same everywhere, but I find that most of my clients have a deep-seated adversion to filing for bankruptcy. As a result, they simply delay talking to an attorney until they think there are no other options. I am glad that my clients think of bankruptcy as a "last resort," but I certainly wished they had called earlier so that we would have more options available to help them.
The biggest issue I see is that clients often have tried to juggle all of their debts for as long as possible, instead of focusing on the most important debts. If a client is going to try to keep the house and cars, keeping those payments current is more important than making payments to credit cards and other unsecured debts. If a client waits until he or she is already behind on the house and/or car payments, that limits my ability to help.
Here's what I would suggest you do before calling a bankruptcy attorney. If these steps do not work quickly, it may be time to make the call.
Work on Your Budget. Everyone hates the idea of using a budget. However, if you have a shortfall in your budget every month, you must figure out exactly where each dollar is going. There are a lot of great budgeting books out there, so start trying to figure out if there are ways to cut your monthly spending that you haven't considered. If you haven't lived on a strict budget before, you likely have some "leaks" in your budget that could be reduced.
Cut Spending on Unnecessary Items. Everyone has a different idea of what is "necessary." However, if you are facing bankruptcy (or even thinking about it), you need to consider whether you can do without all those cable channels, that expensive coffee, or eating out at lunch every day. Groceries and eating out are generally areas where some cuts can be made. If you haven't used grocery coupons, find someone to teach you how to do it the right way. Some people have cut their grocery bills by more than 50% just by using coupons. If you are stopping for breakfast and/or lunch everyday (even at a fast food place), you can probably cut out $25-50 per month just by eating at home or taking a lunch. Look for other small items, like trips to the vending machine, that can be reduced or eliminated. Everything you can do to cut expenses can help.
Keep You Mortgage Payments Up to Date. If you are planning on keeping your home after filing for bankruptcy, keeping your mortgage payments current will give you more options. If you are already behind on the mortgage, you can catch up those missed payments in a Chapter 13 bankruptcy. However, if you want to file Chapter 7 and want to keep the house, you need to be current on the mortgage.
If you have done everything to cut expenses and are still falling behind (particularly on your mortgage), you need to call a bankruptcy attorney sooner rather than later.
