Financial disasters are unpredictable but also rare. This is what makes many people fail to prepare for disasters. It may feel pointless to prepare for something that may never happen. However, looking at the consequences of not preparing can be a huge motivating factor to start preparing. If you are struggling with bankruptcy, feel free to ask one of our Tullahoma bankruptcy attorneys for advice.
STEPS TO PREPARE FOR FINANCIAL DISASTERS
There are four main steps for financial disaster preparation that can help you have a plan for when disaster strikes. First, build up a strong emergency savings account. Saving between six and 12 months of income is highly recommended. For some people, this means saving $10,000 while for others this could mean saving more.
Second, organize and file all your health, personal, and household information. Doing this can save you a lot of time and stress trying to collect these documents when you need them. Organizing them into one file ensures they are safe, in one place, and easy to access.
Third, consider buying health insurance, home insurance, and life insurance. You may want to hold off on life insurance until you reach a certain age. Look into what your insurance covers and see if you have coverage for various disasters. Some insurance companies group disasters into one category while others split different disasters up. See what you are covered for.
Fourth, build a home inventory by documenting and taking pictures. This means taking photos of your personal belongings, rooms in your home, and the outside of your home. Do not leave out important details. Write down short descriptions of each item you find important. What this does is provide evidence to your insurance company when a disaster causes property damages.
HOW TO RECOVER FROM A FINANCIAL DISASTER
Recovering from a financial disaster may sound daunting but it does not have to be. If you went through the financial disaster preparation steps, then you have a plan at the very least. Part of recovery is having a strong plan and then following through with the plan.
When it comes to recovering from financial disasters, start by prioritizing your most important expenses. Do not neglect the bills you depend on to live. Take care of life necessities before recovering from less immediate losses. Contact your loan lenders and creditors to explain your situation if you have to miss a payment.
In some cases, creditors may understand your situation. You could be given extensions and other exceptions like lower monthly payments. With student loans, for example, you might be able to defer loan payments if the disaster was severe enough.
Explore resources in your local area and online that offer financial aid for financial disasters.
BANKRUPTCY LAWYER IN TULLAHOMA, TN
Bankruptcy is not something anyone wants to fall into. Contact us at Tom Bible Law by dialing (423) 690-7712 for a consultation today about your financial situation. Our team of Tennessee bankruptcy lawyers can help you explore all your options for bankruptcy. We serve clients throughout the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.