 TITLE: How to Avoid Filing for Bankruptcy During COVID-19 CONTENT: Can You Meet Your Payments?\n---------------------------\nThis is the first question you need to ask yourself, and the answer will bring you clarity on your next steps. Anxiety about your debt and bill payment obligations isn't enough of a reason to start the bankruptcy process.\nFirst, determine whether you have the capacity to keep your accounts in good standing now and in the coming months. To find out, follow these four steps:\n1.  List your monthly net income. This can be money you receive from a job, unemployment insurance or any other dependable source of income. Make sure to count your net income, which is what's deposited into your bank account after all taxes and other deductions are removed.\n2.  Tally and subtract your expenses. Add up all of your monthly bills and necessities, such as food, housing and utilities. Subtract the total of those expenses from your net income to identify the amount you have remaining for your debt obligations.\n3.  List your debts and payments. Now turn to your debt, which may include loans and credit cards. List each account, along with the minimum payment required each month to keep the account in good standing. Add up all the minimum payments on your accounts to get your minimum overall monthly debt payment obligation.\n4.  Subtract your total monthly debt payment amount. Subtract this amount from your remaining monthly income (after necessary expenses). If you have enough to maintain at least minimum payments, you can breathe a sigh of relief. Cash may be tighter than normal, but bankruptcy can be off the table for now.\nOn the other hand, if you do not have enough money to cover all your minimum debt payments, explore actions you can take and how quickly they can be accomplished:\n*   **Pare down to essentials.** Revisit your expenses and look for ways to reduce your spending. Be realistic. If you've been spending $1,000 on groceries per month for a family of four by scouring for the best deals, odds are you can't slash that number in half. Cutting your entertainment purchases, however, may be a doable option.\n*   **Consider alternative income opportunities.** Even now, there may be a way to bring more money into the picture. You may sell things from around your home or take on part-time, gig or freelance work to add to your income.\n*   **Determine whether this is a short- or long-term setback.** You may not be able to adjust your income and expenses, so project into the future. If you believe your finances will improve within six months to a year, you may be able to implement other strategies to stay afloat. If it really is a permanent deficit, more extreme measures might be necessary. END