If you are filing for bankruptcy in Lethbridge, it is extremely important to set up a personal budget. Your trustee will be asking for a statement of income and expenses one you have filed in order to determine how much your bankruptcy is going to cost you each month. So with this information, going a step further and creating a personal budget will be beneficial to you in many ways.
You will have limited credit options available to you once you are bankrupt. A well- structured budget will help you to meet or exceed your goals to keep your spending within the proper limits. You will need to learn to spend only what you can afford and a good idea is to adopt the tenet “If I don’t have cash to pay for what I want, I can’t afford it”. This obviously is necessary to avoid future credit problems.
A personal budget is the amount of money you (and/or your spouse) earns in one month, as well as what you both spend. Spending includes, mortgage and car payments, line of credit or other loan payments, utilities, gas for your vehicle(s), insurances (life, house and vehicle), food and incidentals.
Many people don’t think about the restaurant lunches at work every day or the two or three coffees they purchase daily. These items can really add up in a month. If you were both buying two medium coffees a day this would amount to about sixty dollars a month for both of you with a 5-day workweek. That could be a monthly bill payment. (i.e. your house fire insurance).
Preparation of a personal budget before filing for bankruptcy in Lethbridge will allow you to track exactly where you are spending your money. It may be that cutting some corners in your spending could help you avoid bankruptcy and allow you to pay down your debts on your own. You may discover that a consumer proposal or orderly payment of your debts could be an alternative to bankruptcy if you have a better understanding of your spending habits and are willing to take the necessary steps to cut back on your spending where you can.
Another good reason to prepare a personal budget is that if you do end up going bankrupt, your trustee is going to require an accounting of the exact amount of money you owe, and to whom. One of your trustee’s responsibilities will be to make payments to your creditors based on your surplus income. Surplus income is the amount of money you earn monthly that exceeds the money you require for your basic living expenses.
Your personal budget also helps your bankruptcy trustee determine how much your bankruptcy is going to cost you. He determines this with a statement of your income and expenses. After your bankruptcy is discharged, following a strict budget will help you to avoid the same mistakes that led you into financial difficulty in the first place.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
