Chandler, AZ -- (SBWIRE) -- 09/22/2014 -- Bankruptcy filing is often perceived as an easy way out to escape debt. While it is true that it will eliminate one’s debt, U.S. residents may find that what they get in return may be more than they bargained for, credits to legal changes enacted in 2005. In connection to this, Arizona bankruptcy attorney releases some useful tips to avoid all these hassles and advises the public to do everything they can to avoid the filing for bankruptcy.

According to an Arizona bankruptcy attorney, filing for bankruptcy is a direct result of bad spending habits tied with poor saving habits. Bankruptcy is an indication that it is time for a lifestyle change, this can be easily remedied if one will follow these tips:

Cut Spending

This first step of that change is to find out the monthly expenses, these should not exceed the family’s monthly income. Coming up with a budget is the quickest and easiest way to get a handle on the family’s spending habits. Identify the needs from the wants. At the small end of the spectrum, one must abolish all expenses beyond the absolute basics of food, clothing, shelter and transportation to and from work.

Maximize Income

If at risk of bankruptcy, the best way to maximize income is to get a job. If one already has a job, get a second job. If working on two jobs still doesn’t fill the family’s needs, get a third job. This can also be applied to each member of the family capable of working. One’s efforts to make more money can also involve selling some of the stuff he purchased during his free-spending days.

Seek Professional Help

Some bankruptcy attorneys and law firms are too aggressive in getting their clients. Their common sales pitch is "pay me a fee to help you escape your debts", those who are desperate for quick fix easily fall for this. Prior to taking this course, consider that the simplest, and perhaps most useful, counseling that one can get is the suggestion to close his wallet and curb his expenses.

Lifestyle Change Should be Permanent

The world is full of serial bankruptcy filers who use recovery from bankruptcy as an excuse to spend again. It’s not healthy to follow this example; once fully recovered, it is advised to build up an emergency fund to assure that one will not find himself filing for bankruptcy again.

The Arizona bankruptcy attorney also enumerates the consequences of declaring bankruptcy. The new bankruptcy laws in the U.S. may require those filing for bankruptcy to:

-Attend mandatory credit counseling.
-Make ongoing payments to creditors.
-Attend mandatory financial-management education.

Filers will also end up having a bad credit rating, taking away one’s ability to loan money at standard rates for up to 10 years. This may result to a bigger debt for the loans that one can get will come from the ones with high interest rates.

If one is serious and determined about getting his finances on the right track, he needs to get out of debt and stay out of it for good. For former overspenders willing to start exercising a lot of discipline, it is possible to avoid bankruptcy and all the additional problems that come with it.

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