What are some reasons why a person might file for bankruptcy even if they have the money to pay their debts?
Jan Meriss Alfonso Assistant at Ascent Law LLC Reasons Why People File For Bankruptcy If They Have Money to Pay Debt Overspending Although it may seem strange to file for bankruptcy when you have the money to pay off your debt, many people have a difficult time coming up with the money to pay off their bills. The first step to avoiding filing for bankruptcy is to overhaul your budget. This means cutting out all unnecessary expenses and spending every single dollar you have on paying off your debt. It also means putting your wants on hold until you can get your debt under control. A financial advisor or nonprofit credit counseling service can help you develop a budget. These professionals can also offer additional solutions to help you pay off your debts. Poor money management skills Bankruptcy is a financial disaster that occurs when you do not manage your money properly. If you live paycheck to paycheck, you may not be able to handle unexpected expenses, like a car repair or a m...