How To Avoid Bankruptcy Arizona

1. The first step to avoid bankruptcy is to gather up all of your past due bills.
   
   
2. Determine how far you are behind on all of those bills.
   
   
3. Take your monthly net income and deduct your rent, food, gas, utilities, and current monthly bill payments.
   
   
4. Take what is left of your income, after these deductions, and divide that number by the amount that is currently past due on your credit cards and loans. This should give you the number of months that it will take to pay off your past debt and avoid bankruptcy. For example, if you owe $20,000 and your disposable income is $1,000, it will take you 20 months to pay off your past due debt.
   
   
5. Divide this money evenly between your creditors. For example, let's say you owe $10,000 to creditor A, $5,000 to creditor B, and $5,000 to creditor C. Your should give $500 per month to creditor A, $250 to credit B, and $250 to creditor C.
   
   
6. Once you have determined how much you can give to each creditor, call them to set up a payment plan. Hopefully they will accept without any problems.
   
   
7. If your creditors refuse to work out a payment plan directly with you, you may need to get some outside help from a non-profit credit consulting or debt consolidation agency. A credit counseling agency may be able to set up an affordable payment plan with your creditors and a debt consolidation agency may be able to buy your past debt from your creditors and roll it into one bill that you will pay directly to them.
   
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Author: Julie Bonner