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Repaying debts and not filing bankruptcy

Posted by Peter Behrmann, Esq. On March 15th

Repaying debts and not filing bankruptcyDebt Gone

Bankruptcy is not for everyone.  Yes, you heard me, I am a bankruptcy attorney and I am telling you that not everyone needs to file for bankruptcy.  Each week I meet with at least one person where I will flat out tell them that bankruptcy is not for them, or perhaps there are other options available to them.

So let’s say you’re not going to file bankruptcy?  How can you yourself repay you debts?  Here is my advice:

  • Mortgage, rent, car payments all need to be made first.  These are the most important financial obligations you have.  I know if you are one day late on your visa payment they are going to be calling you and your mortgage company will give you 30 days before they call.  It does not matter, pay your mortgage first!
  • Next, stay current on your tax obligations, utilities, and essential financial obligations.  It’s not going to do you any good to get your electric service turned off in order to pay a credit card, stay current on these obligations to avoid late fees and other penalties that you cannot afford.
  • Now that your house, car, taxes, and utilities are all current, you can start paying your other unsecured debts, credit cards, student loans, and medical bills.  You will see that this group of debt is last on my list because is needs to be last on your list to pay as well.  I see so many people that are current on everything except their first mortgage because their mortgage payment is their highest payment. When in theory this should be the first bill you are paying. 

Now obviously this advice only will work if you can afford to make all of you financial obligations.  This very well may be advice that I give to someone who may have fallen behind on some bills due to a job loss and now is back to working and I feel that they are going to be able to catch everything up without my help.  If you curious about your situation I offer a no obligation consultation where I will review you financial situation to see what path I think is best for you.  Sometimes that path is bankruptcy; sometimes that path is listed right above, you taking care of your own financial matters on your own. 

 

Peter Behrmann is a Livonia Bankruptcy Attorney.  From my Livonia, Michigan location, I represent clients throughout Metro Detroit and beyond, including Garden City, Wayne, Westland, Redford, Dearborn, Taylor, Ann Arbor, Belleville, Northville, Novi, Farmington, Farmington Hills, Plymouth, Canton, and the Counties of Wayne, Oakland, Livingston, and Washtenaw. My practice is limited to helping consumers like you file Chapter 7 and Chapter 13 Bankruptcy.

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