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Do you have a spring cleaning checklist that you are working your way through this year? If so, it is a good time to add your finances to the agenda. Spring is a great time to work your way through the clutter—and your finances are no exception. Make a plan to assess and address your financial status. Here, our Martinsburg debt relief attorney provides four tips for reviewing and cleaning up your finances this spring.

1. Take a Comprehensive Financial Inventory

Spring cleanup always starts with a comprehensive financial inventory. Before you can sort out and declutter your finances, you need to know exactly what you have, what you are earning, and what you owe. While taking a financial inventory can be stressful—especially if you are dealing with a lot of debt—it is an important first step. When it comes to financial health, knowledge is power.

2. Get a Copy of Your Credit Report

You should review your credit report on a regular basis. Make sure that all of the information is accurate. You have a legal right to a free report each year. As explained by the Federal Trade Commission (FTC), every American is entitled to one free copy of their credit report from each of the nation’s three major credit bureaus each year. To get a no-cost copy of your credit report, you should use annualcreditreport.com. You do not have to pay for a credit report from a private service.

3. Create a Budget—Identifying Problem Spending Areas

Do you have a budget? If you do not have a budget or your budget is outdated, this spring is a good time to get started. A household/personal budget is simply a financial plan that allocates your income to expenses, savings, and debts. Some elements of an effective budget include:

• A clear record of your current savings and monthly income;
• A list of your current monthly expenses; and
• A list of the debts that you are repaying—including the monthly cost.

4. Make a Plan to Pay Off Your Debt

Debt should not be a source of shame. Many families are dealing with high levels of debt—especially in the fallout of the COVID-19 pandemic. According to data included in the 2020 American Household Credit Card Debt Study, the average U.S. household with debt (mortgage, car loans, student loans, credit cards, etc.) owes $145,085.

Unfortunately, debt can quickly start to spiral out of control. A few months of delayed payments, some additional late fees, and the loss of a job or other income can cause serious problems. You need a plan to address your debt—and you do not have to come up with one alone. No matter your circumstances, there is always hope. Hinkle Law PLLC can help you solve your debt problem and repair your financial situation.

Schedule a Free, Confidential Consultation With a Bankruptcy and Debt Relief Attorney

At Hinkle Law PLLC, our bankruptcy & debt relief lawyer is devoted to helping people find peace, security, and long-term financial stability. If you have any questions about cleaning up your finances, we can help. Contact us today for a free, fully confidential phone appointment with an attorney. With office locations in Martinsburg, Charleston, and Hagerstown, we serve communities throughout the region, including West Virginia, Southwestern Pennsylvania, and Western Maryland.

Are you dealing with non-stop calls from creditors and debt collectors? Are you falling behind on bills more and more each month? If so, it is normal to feel stressed out and frustrated by your financial circumstances. You probably just want to disconnect and get everything out of your mind.

While this is understandable, doing nothing is one of the biggest mistakes you can make. It is far more costly than filing for bankruptcy protection. Here, our Martinsburg bankruptcy attorney explains why doing nothing to change the direction of your finances carries such a high cost.

Debt Relief: Three Reasons Why Doing Nothing is So Costly

1. Debt Will Continue to Build and Become Unmanageable

Does your debt feel unmanageable now? Imagine how much worse it is going to feel in six months or a year if you do not take action. The fees, interest rates, and penalties will keep adding up making the situation all the more challenging.

2. The Stress of Dealing With Debt Collectors is Immense

Dealing with a never-ending stream of calls from aggressive debt collectors is stressful. It takes a real mental and emotional toll on a person. You do not have to keep dealing with it on your own. When you file for bankruptcy protection, you are entitled to an automatic stay under 11 U.S. Code § 362. Creditors must halt debt collection activities.

3. Your Credit Score Will Deteriorate Further

If you do nothing, your credit score will continue to deteriorate. You may have heard that filing for bankruptcy is also bad for your credit rating. That is somewhat misleading. While it is true that filing for bankruptcy would damage the credit score of someone with a good credit rating, doing so can actually help a person with a poor credit rating. As noted in a report from the Federal Reserve Bank of New York, filing for bankruptcy tends to help an insolvent person’s credit score in the long run.

Bankruptcy is a Tool to Help You Change the Direction of Your Finances

It is your legal right to file for bankruptcy protection. Ultimately, bankruptcy is a tool to help good, hard-working people get the fresh financial start that they need and deserve. With debt, the general rule is relatively straightforward: The sooner you take action to address the problem, the easier it will be to find a solution.”

If you are a good candidate to file for bankruptcy protection, it is better to file sooner rather than later. Likewise, if you are a good candidate for an alternative, non-bankruptcy debt relief solution, you need to get started right away to put yourself in the best position to get back to financial stability. Our law firm will work with you to help you find the right path forward.

According to data from the American Bankruptcy Institute (ABI), nearly 530,000 Americans filed for personal bankruptcy protection in 2020. With the new year, why not get a fresh start with bankruptcy? In this article, our West Virginia bankruptcy lawyer provides an overview of your personal bankruptcy options, explains how the process can help you get a fresh start, and highlights the things you should consider if you are trying to determine if bankruptcy is right for you.

Personal Bankruptcy: Know the Basics

If you are considering bankruptcy to repair and reset your financial situation in the new year, it is important to understand that there are two distinct types of personal bankruptcy. You may be eligible to file for:

• Chapter 7 bankruptcy: Also referred to as a liquidation bankruptcy or straight bankruptcy, Chapter 7 bankruptcy protection allows an individual to discharge (wipe out) most or all of their outstanding debts, including credit card bills, medical payments, personal loans, overdue utility payments, and more.
• Chapter 13 bankruptcy: The primary alternative to a liquidation bankruptcy, Chapter 13 bankruptcy is known as the ‘wage earner’s plan.’ Instead of an automatic discharge, a person’s debt is restructured into a single (reduced) monthly payment that lasts three to five years. With Chapter 13, penalties and interest are generally waived and some principal is often forgiven.

Bankruptcy Can Help You Get a True Fresh Start

If you are falling behind on monthly payments or dodging calls from aggressive debt collectors, bankruptcy offers an answer. For most of the people who do it, filing for bankruptcy protection brings a tremendous sense of relief. It is not an overstatement to say that bankruptcy is a path through an otherwise insurmountable problem. With a proper, well-considered bankruptcy application, you can get a truly fresh start.

How to Know if Filing Bankruptcy is the Right Option

Not sure if you are a good candidate for bankruptcy? You are certainly not alone. Many people have questions about whether bankruptcy is really the right thing to do in a specific situation. You may be a good candidate for bankruptcy if:

• You are falling behind on your monthly payments;
• Your debt situation keeps getting worse and you see no way out; and
• You are stressed out and you want a fresh start.

One of the best steps you can take is to set up a free, comprehensive case evaluation with a top-rated bankruptcy attorney. A bankruptcy lawyer will be in the best position to review your finances and help you understand your options. If bankruptcy is the right choice, a lawyer will tell you what you need to do next.

Call Our Bankruptcy Law Attorney for Guidance and Support

At Hinkle Law PLLC, our bankruptcy lawyer helps people and families get a fresh start. If you have any questions about your bankruptcy or debt relief options, we can help. Contact us today for a free, completely confidential initial consultation. With office locations in Martinsburg, Charleston, WV, and Hagerstown, MD, we offer bankruptcy law and debt relief services in West Virginia, Western Maryland, and Southwestern Pennsylvania.