Sometimes, when I see people, they are already in “survival mode”. They have cut all of the unnecessary expenses, such as landline phone, cable TV, newspaper subscriptions, etc. But, when your hours are cut, or you have extreme medical bills, or are laid off, you have to cut expenses further. If you are at that point, you have to prioritize, and pay the most important bills first. If you (or someone you know) is contemplating bankruptcy, you (or your friend) will need to figure out what to do.
What are the most important bills to pay?
1. Mortgage, rent, and association dues. Assuming you want to stay in your
house, those are the number one priority. Bankruptcy cannot eliminate those responsibilities. And, of course, you need a place to live. If you don’t make house payments, you can be foreclosed on, and, if you don’t pay your rent or association dues, you can be evicted. In Illinois, a condo association can evict you like a landlord can, which is very quickly.
2. Car payments. If you want to keep your car, this is a must. An automobile lender can repossess your car without going to court, and, after even 1 missed payment! It’s difficult to get the car back, so just make those payments. Without a car, life will be much more difficult!
3. Insurance. Pay your homeowners’, car and health insurance. This will prevent many more difficult problems! Driving without car insurance is against the law, and, if you have an accident, you could be in for more problems. Also, you are required to have full-coverage insurance on the car itself if you owe money on it. Health insurance- medical bills are expensive, and makes for huge problems if you don’t have it. And, after March 1, 2014, you are required to have insurance under the Affordable Care Act!
4. Pay for groceries with cash! You need to eat, and this is obviously very important, but don’t use a credit card. That will only make your debt problem worse, and possibly complicate any bankruptcy.
5. Pay your utilities! You need your lights, gas and phone services, so pay them! They can disconnect your services quickly, so avoid that crisis!
What can you avoid paying? Credit cards, and other store accounts. You will get calls from the companies. They will send you to collection and threaten to sue you. But, you need to survive! This is only a temporary fix, though, and you need to take further action.
If you are at this point, where you are struggling each month to pay for your necessities, it is crucial that you call an experienced bankruptcy attorney! We can make a plan of action, to help you out of your problems, so you won’t be struggling each month. You need to make your plan as soon as you can. Because once your creditors start to sue you, you’ll be under more pressure to stop foreclosures, or wage attachments.
Call now, we’ll help give you “Peace of Mind”.
Daniel J. Winter
BankruptcyLawChicago.com
Offices in Chicago, Gurnee, Oak Lawn, and Skokie, Illinois
djw@DWinterLaw.com
BankruptcyLawChicago.com
312-789-9999
