How to Avoid Bankruptcy in Maine
- 1). Contact creditors to ask for a reduced interest rate and lower monthly payments. Most creditors are willing to work with customers who are having a hard time paying bills. Maine bankruptcy courts provide for a meeting between residents filing for bankruptcy and their creditors for this reason. It works to the advantage of a creditor to help you find a way to continue paying your bills rather than have you go into default.
- 2). Consolidate all possible debts and pay them over an extended period of time to lower the monthly payments. Refinance your home loan to reduce your house payment and roll all other debt possible into the loan to spread the payments out over 30 years. Use a debt consolidation loan if home refinancing is not an option. Paying less to creditors each month may be enough to save you from bankruptcy.
- 3). Draw up a budget for your household by listing everything you spend any money on, including communications, laundry, transportation and entertainment. Add up the total spending and place it against your total income. Make a list of realistic needs within your spending and eliminate any other nonessential costs. Live within the budget while you pay down your debt.
- 4). Use the resources available to Maine residents for assistance in paying for food, utilities, medical care and housing. Visit the websites for the Maine Department of Health and Human Services, Maine Housing Authority, Bangor Hydro and Penquis to look into state assistance for your family's needs (see Resources). Many Maine bankruptcy cases are avoided by removing some of the financial burden of everyday living expenses.
- 5). Take on a second job, if possible. Earn extra money part time from any available job to ease the tight financial situation leading you to consider filing for bankruptcy.
Source...