Waukegan Bankruptcy Attorneys Help Build New Life After Filing

When overwhelming debt has you backed in a corner and collection agencies are making your life awful, some common sense prioritizing is in order. Every collection agent insists their debt is the most pressing and there’s not enough money to go around. Who to pay first? Or, who to pay at all? Bankruptcy appears inevitable. How can you make your road to bankruptcy smoother, if that is indeed where life is leading you? Stop, take a deep breath and follow the suggested order below from Waukegan bankruptcy attorneys.

The IRS – Always, always, always, file your tax returns. Even if you must file the return without payment attached. Delaying filing because you don’t have the money to pay or evading filing all together will only make the predicament worse. The IRS can garnish your wages, seize your house and assets, empty your bank accounts and generally make life miserable. Contact bankruptcy attorneys in Waukegan for further information on dealing with the IRS and bankruptcy.

Child Support – Failing to make child support payments can land you in jail, have your wages garnished and a myriad of other problems that vary from state to state. These have a way of piling up until the total owed is insurmountable, so make these payments timely.

Groceries, gas and medical needs – You have to eat and get to work, right? Handle these debts on a daily basis and pay cash, if possible. These expenses can be juggled around, robbing Peter to pay Paul, as the saying goes, to balance out this spending.

Mortgage and rent payments – Losing your house or home won’t make things better, so pay these bills next. Mortgage companies are often open to some negotiation on the mortgage payments and occasionally will move a payment or payments to the end of your mortgage schedule, giving you at least one month of breathing room. Landlords may not be as receptive on delaying rent, but like other creditors, they’d rather have something than nothing, so give negotiating with him or her a try.

Utilities – Heat, electricity and water are essentials. Pay these next. Again, these expenses can be manipulated to save some money. Cable television and phone service are not as important and can be disconnected if necessary.