Can Your Lifestyle Lead You Into Bankruptcy?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

bankruptcy attorney houston texas, lawyer, bankruptcy fees, texas, attorney,For a large portion of society, the thought of having to seek protection by filing for bankruptcy is something that happens to the other guy and could never happen to me or to us if a couple. It is the guy who lives the largest life who is the one at risk of overextending themselves, the ones with the Ferrari’s and Lamborghinis and the opulent homes and boats and the other accoutrements of excess that are in danger.

While this may be true the fact remains that even the average family with a couple cars and a home and maybe a cottage or vacation property is most likely living beyond its means as much as the guy with all the big toys. It all comes down to perspective in a way. If you earn $250,000 per year but typically spend $500,000 then you are spending 100% more than you bring in every single year. Yes, that is a recipe for disaster and the one the average Joe will point to as the risky behavior. Yet the same person will look at their own finances and think because they only make $50,000 per year BUT spend $100,000 that their situation is different based on the amounts of money involved.

You are still spending 100% more than you are bringing in. This example is extreme but it illuminates the fact that most of us in today’s society live way beyond our means. The availability of the cheap and easy credit that we have “enjoyed” over the past decade could lead to disaster at some point financially and could well end in bankruptcy. Do some soul searching and see if you are living beyond your means and correct whatever behavior you need to in order to avoid the consequences down the road. Before filing bankruptcy in Dayton Oh, be sure to consult with an experienced Houston bankruptcy attorney.