What should I avoid when I am in debt?

If you have a lot of debt and need help with consolidation, you may want to consult a debt resolution lawyer to guide you in your financial endeavors. In the meantime, there could be some actions you should avoid while accumulating debt.

Paying the minmum on debts

One strategy you might want to avoid is only paying the minimum amount for your debts per month. This may only enable your debts to pile up and you may find yourself worse off as you go along. It might be a good idea to also not rely on the people close to you to give you legal help. It’s possible that asking your friends and family for financial means could end up damaging your relationships with them.

Getting a professional debt counselor

If you are looking for a professional debt counselor to help you organize your payment plans, then it would be a good idea to do some extensive research before depending on them to help you. Sometimes these counselors will demand cash up front or outstanding fees that can only add to your debt versus subtracting it. If you are considering taking out loans, you may want to avoid high interest ones as the convenience of having one payment does not necessarily outweigh the disadvantage of potentially increasing the amount you owe per month.

Bankruptcy lawyers

It might be a good idea to speak with an attorney on whether you should file for bankruptcy or a debt settlement. Bankruptcy does not have to be your only option for debt relief and there can be serious consequences involved with this method. In any case, a debt resolution lawyer can help you determine your best strategy for your personal case.

Is it possible to prevent an eviction if I file for bankruptcy? If you find that your landlord is trying to evict you, you may be able to file for bankruptcy for some relief. If your lease is coming up, an eviction may give you trouble down the line when trying to move out and find a new place. Can a bankruptcy help you?

Yes filing for bankruptcy will temporarily stop the eviction. Be sure to list your landlord as a creditor in your filing. Also, if you have been served with an unlawful detainer you should file a notice of BK with the court that case was filed in. If the sheriff is already involved you need to provide them with notice of your filing.

This answer pertains to individuals in the state of California.

Answered by:
David VanDyke

Location: Stockton, California
Phone: (209) 390-8877