It's an increasingly common problem. You want to declare bankruptcy, but you're told your expenses are too low. You need to find a way to increase your expenses or decrease your income. What do you do?
Why Are Your Expenses "Too Low"?
When people are in debt, they often reduce their expenses by a lot. Commonly, they move in with their parents so they don't have to pay rent. The problem is that Chapter 7 bankruptcy law determines whether you can reliably pay your debts using your expenses and your income.
The reasons to declare bankruptcy varies from person to person, but many people cite the punitive measures taken by creditors as a prime issue in their decision. It's easy to see why – creditors can make those who don't pay their bills on time pay in many other ways. The phone calls and letters are just the start for some who are in over their heads in debt and sinking lower each day.
