The COVID-19 crisis has affected the livelihood of millions of Americans. With so many people out of work and facing mounting debts due to loss of income, bankruptcy has become an attractive option for individuals seeking debt relief. But before you file, make sure you’ve tried these tips first, as they may enable you to avoid bankruptcy altogether. 

How to Avoid Bankruptcy During the Pandemic

1. Review All Financial Accounts

Sometimes an anxious mind jumps to conclusions, so thoroughly review your finances to figure out if you truly do need to seek debt relief. List your monthly income, then subtract all of your monthly expenses. Whatever is left is what you have to apply to your debt. If this amount is more than your minimum monthly payments, you may not need to file for bankruptcy.

2. Cut Back on Expenses

The tip above will only work if you’re not spending that extra income on unnecessary items. Because so many activities have been curtailed due to COVID-19, it’s not hard to find areas to cut expenses. For example, you can save money by steering clear of restaurants and gyms. Or if you’re working for home for the unforeseeable future, you likely don’t need to splurge on any high-end business attire anytime soon.

3. Add Income

Have you considered taking on extra work? If you have the time, a supplemental part-time job will add to your income and ensure you have enough money to pay off your debts. Selling clothing, furniture, collectibles, and other extraneous items online is another way to boost your income, so you can achieve debt relief.

If you’ve tried the above suggestions and find you still need debt relief, get in touch with Donald L. Spafford, Jr., Attorney at Law. For more than three decades, this seasoned attorney has provided first-rate legal services to clients in Honolulu, HI, helping them regain control of their finances through options like personal bankruptcy and debt consolidation. Visit his website or call (808) 532-6300 to set up a complimentary consultation.