By Adrian F Alexa
When you file for bankruptcy you will have a tough time paying all your obligations, so make sure you put what’s left of your finances to good use. Only use the money to avoid the most severe problems, the rest you can ignore as it will probably go away once you have filed for bankruptcy. Here are some key elements you should focus on, listed by their importance:
Paying your rent or mortgage. This should be on the top of your priority list if you plan to have a place to live in. Not paying mortgage will probably have you evicted and living on the streets.
Paying the utilities should come in second. Even though you are bankrupt, it doesn’t mean you can’t have a decent life.
A vehicle, only if it is vital. If your work depends on a vehicle, than it is a must. Don’t give up on your mean of transportation if it will lead you into more trouble.
Paying fines. Jail is unpleasant for anyone, so avoid it by paying the fines that might put you there.
Child support and alimony. Make sure you are fully aware of the consequences of not paying the child support.
Most judges tend to have zero tolerance for parents that ignore their children, so you probably will end up in jail if you cut payments.
Income taxes. Messing with the IRS is never a good idea, so pay your taxes.
Student loans. If you have such loans, it’s a good idea to pay them, as you don’t want the amount to increase over the years.
In conclusion, choose carefully when deciding what bills and debts you should pay before you file for bankruptcy. You should focus on the most important ones and neglect the ones that will be wiped out anyway.
Adrian is the editor of this article. He also started a new project about construction payroll software solutions. This is a website where you can also find out more about how to use an online payroll calculator.