Clutter can lead to your financial demise.  Consider those who cannot keep track of receipts, records, bills, checkbooks, retirement accounts, or any other aspect of their financial lives.  Chances are, their desks have paperwork strewn across it, possibly even spilling onto the floor.  If asked how much money is in their checking account, they probably could not tell you.  They likely do not know the balances on their credit cards, or amounts owed on other loans such as automobile loans or student loans.  Many financial advisors have uncomfortable images of their clients sitting desolate amongst mountains of loose papers, bills, and receipts.  So before you begin your search for a qualified bankruptcy attorney in Suffolk County, you should ask yourself this question: are you having genuine financial difficulties, or are you simply disorganized. 

 

Many people discover that their financial distress is almost entirely unfounded, and that the real problem is that they know far too little about their financial situation simply because they are terribly disorganized.  This is why thousands of Americans sign up for debt management and consolidation companies each year.  These companies, known as consumer credit counseling services, know that disorganization is a financial killer.  They organize all of your expenses, and convince you to pay for their services because you will only have to make one payment a month to cover nearly all of your bills.  This simplicity is what many of us seek.  However, we can achieve this simplicity ourselves, and not suffer the credit damage that occurs when you work with a consumer credit counseling service. 

 

In order to break from the cycle of confusion caused by disorganization, spend a weekend getting yourself and your finances in order.  File your bills according to their due date.  As you do so, create a sheet detailing each bill, the balance owed, and the balances.  Create a corresponding chart that details sources of income, total amounts, and the date those amounts are available to you.  Create folders to store receipts and paystubs in according to type: household, automobile, electronics, tools/equipment, healthcare, and so on.  Relearn to use your checkbook!  Many people are now doing their banking online, which is as safe as or even safer than issuing checks each month.  Spend $5 and procure one of those large desk calendars.  Write your bills in spaces on the date they are due. 

 

With this type of financial organization comes clarity.  Knowing your total balances, to whom they are owed, and the methods with which you will pay these obligations will tell you essentially what a financial advisor will tell you.  Using the information gleaned by creating order in your financial life, you should be able to tell if a bankruptcy is in your future.  You will learn one of three things:

            1.) You have more than enough money to pay your expenses. 

            2.) You have just enough money to pay your expenses.         

            3.) You do not have enough money to pay your expenses. 

 

With this information, you can then make personally-informed decisions.  If you fall into category number 1, then you have no problems.  If you are a number 2, you need to speak to a financial advisor to discuss ways to reduce expenses and increase income.  If you are a number 3, you should talk to a financial advisor, or a consumer credit counseling service.  They may then advise you to contact a bankruptcy attorney.  If this is the case, the attorney will greatly appreciate the fact that your situation is clearly disclosed and very organized.      

 

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This entry was posted on Monday, January 26th, 2009 at 7:00 am and is filed under General Information. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.