Important Bills to Pay When Struggling and Considering Bankruptcy

People struggling financially need to put their money where it will help them the most. People that begin to fall behind financially often times don’t have a plan or strategy to help themselves the most.  They worry about paying whatever bill is due next with no regard to the fact that paying that bill might keep them from paying their next.  You need to keep a plan even if you’re struggling financially, and you need to send your money where it will help you the most.  Here’s a list of the top seven places to send your money if you begin to fall behind:

1. Income Taxes

Income taxes can rarely, if ever, be eliminated and falling behind on them can even become criminal.  The point is, don’t get into trouble with the IRS.

2. Child Support and Alimony

As with income taxes, falling behind on child support and alimony can become criminal.  Also, chances are you won’t be able to eliminate or change these payments if you file bankruptcy, so make sure you keep up with them.

3. Fines

Depending on what type of fine you owe, non-payment could get you into criminal trouble.  Keep your record clean, and make sure you pay all of your fines.  There are options available for delaying paying, getting on payment plans, and etc.  The bottom line is the entity you owe wants to get paid, so they will work with you to get their money.

4. An Essential Vehicle

Don’t fall behind on payments for your essential vehicle, because it can be repossessed.  It is going to be real hard to handle your business, buy groceries, and drive to work if you can’t drive anywhere.

5. Utilities

If you fall behind on your utilities they can and will be cut off.  Imagine not having running water or electricity in your home.  Don’t let this happen to you and make sure you stay up to date on your payments.

6. Your Rent or Mortgage

You need a place to live, so make sure you make these payments.  If you eventually file bankruptcy, most of the time you get to keep your home, but make things easier by staying up to date on your house payments.

7. Student Loans

In almost all cases student loans can’t be discharged in bankruptcy.  You can just make things harder on yourself by falling behind.  Your interest rates can be raised and larger than normal payments will be automatically withheld from your paycheck whether you like it or not.

The Rest Will Likely be Wiped Out by Bankruptcy

Some of the bills that aren’t on this list are bills that can be wiped out in bankruptcy.  These include credit cards, medical bills, and loans from banks or finance companies.  Also, those types of lenders have the most trouble obtaining judgments against you.  That means it will be harder for them to make you pay what you owe.

The bottom line here though is that if you’re struggling financially, you need to speak with an expert.  It doesn’t hurt to talk to a bankruptcy attorney to see if bankruptcy can help you.  In most cases you can keep your vehicle and home, and you can have debts wiped out.  If you would like to find out more, contact a bankruptcy attorney as soon as possible.