What happens when I lose my job and can’t pay my bills?
Unfortunately, the stark reality is many people will lose at least one job in their lifetime. That often leaves them in a state of panic. What is going to happen to me now that I cannot pay my bills? Will I lose everything? Never fear, says Brooklyn bankruptcy law firm, the Ursulova Law Offices. There are things you can do. Please read this blog all the way through.
Contact a Lawyer Immediately
Everyone should have a law firm in their corner from the beginning, says Ursulova Law Offices, noted Brooklyn bankruptcy attorney. You never know when you might need one.
In the scenario where you have lost your job, one of the things you need to do is contact your creditors. They may be able to work out payment arrangements for you. However, you should not do this without the assistance of experienced legal counsel. This process must be done properly in order to prevent further hardships.
Are There Options Besides Filing for Bankruptcy?
Yes, there are. Ursulova Law Offices, expert Brooklyn bankruptcy lawyer, has given us a list. Let’s take a look at it.
- Immediately try applying for unemployment benefits
- Figure out how much money you have saved
- Make a list of any money that is owed to you by any sources
- Eliminate all wasteful spending
- Prioritize all of your expenses for the next couple of months
- Make out a monthly budget and stick to it
- Divide your expenses into two parts – things you need and things you want
- For right now, eliminate spending money on things you want but do not need
- With the aide of your lawyer, contact your creditors and service providers
- Keep looking for another job
- Look into working with a certified debt relief company
What NOT To Do If You Have Lost Your Job
DO NOT get yourself involved with payday loans. This may seem like an easy solution; however, there are many consequences. They have extremely high interest rates and expect to be paid back within a maximum of four weeks.
Another thing to be aware of with payday loans is, in your desperation you might give them your bank account information. They will use this to raid your account frequently and without warning. This is not good!
What About Your Retirement Accounts?
This is another source of cash you might have access to, but should steer clear of. Eventually you will get another job. Looking even further into your future, you will reach retirement age. What happens if you use up all your retirement money now? You will not have any left when you do retire.
Another problem with raiding your retirement money now to pay bills is, you will be required to pay taxes on that. The taxes alone can be substantial and will only add to your current debt. Avoid this at all costs says the expert bankruptcy attorney Brooklyn.
Is Bankruptcy a Good Option?
We asked this question of Ursulova Law Offices, the proven bankruptcy lawyer Brooklyn NY. Here is what they said.
“If a person tries their best but cannot find another job, bankruptcy might be the best option. However, it is not without pitfalls. Your credit could be permanently damaged. Plus, there are some bills that will still need to be paid off that will never go away.”
How Can a Lawyer Help?
He or she will sit down with you and go over everything we just discussed, then create a plan of action for you. You can call our helpful bankruptcy attorney Brooklyn NY no matter where you actually reside.
The professionals at Ursulova Law Offices will handle everything remotely for you including consultations. When it comes time for any court appearances, your representative will be at your side and will be prepared. If you have lost your job, contact them right away.