In The Red Considering Bankruptcy

27 December 18

bankruptcy act

At first glance you'd think they have it. They own a home up in the mountains just outside Boulder, Colorado. Paul's a doctor with a growing practice and a promising future. Robin works part time doing social work and devotes the rest of her day to looking after their son, Asa. The problem is, like a lot of families, they carry too much debt, way too much debt. How did they get there?

Before you decide to go that route, carefully research it. Consider the consequences and examine whether your circumstances truly merit such a big step.

Here are some suggestions and things to remember:

  1. Create a realistic budget and stick to it. This means periodically checking it and readjusting your figures and spending habits.
  2. Paying down debt is saving. Every time you're reducing that credit card debt, you're saving.
  3. Set up an automatic payment plan. This is where the bill gets paid directly out of your checking account at the same time every month
  4. Talk about your expenses before it becomes a problem.
  5. Remember, in 1998 Congress amended the bankruptcy act and effectively eliminated bankruptcy as a way to get rid of student loans.