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Haile Shaw & Pfaffenberger Attorneys at Law

The Four Most Important Moves to Make to Avoid Personal Bankruptcy


Paying down your debt allows you control of your finances and keeps you from having to file for bankruptcy. Today we’ll be talking about Chapter 7 of the Bankruptcy Code which provides for “liquidation” – the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors and how to avoid this form of bankruptcy filing.


Start Using a Written Budget

The number one most useful move in avoiding filing for bankruptcy is to create a written budget and be adamant about following it. Whether you prefer an excel spreadsheet, or app or traditional pen and paper, this is the most beneficial move you can make for yourself to avoid filing for personal bankruptcy.

Increase Your Income

Many people tend to forget that while you should be cutting your expenses, you should also be increasing your income. Working overtime or working a second job during the weekend are both extremely helpful options for increasing your income. Even an extra $500 a month from working extra hours can help you tremendously.

Sell Your Property

Consider what you can part with. Things such as cars, antiques, and unused property can be sold at public auctions and help you earn extra money and avoid personal bankruptcy. For once you do file for bankruptcy- if filing a Chapter 7 case, it means liquidation of your assets. Meaning a review of your assets by a trustee and losing control of selling them yourself.

Cut Up Your Credit Cards

Until your finances are stable and under control, you should not be using credit cards under any circumstances. Even your “emergency” card that you swear is only used for emergencies should be cut up as well. What qualifies as emergencies should be extremely different than what you once considered emergencies. Your AC fails in your car and that seems to constitute as an emergency but until you get yourself out of dire debt, although uncomfortable, fixing your car’s AC is not something that needs to put you in further debt.


If you find yourself in a financial hardship, we are here to help. Contact us and we will walk right beside you through this stressful time. 561-627-8100 

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