What I’ve learned from my bankruptcy clients

Minimize Expenses

The best way to maximize your monthly income is to take a good, hard look at your monthly expenses to determine what can be reduced or eliminated.

Mortgage Payment

Too many debtors’ have Forced Placed Insurance (FPI) which is a really expensive form of property insurance that typically costs around $2,400 per year. This type of insurance should cost no more than $125  per month or $1,500 per year. A savings of close to $1,000 per year.

Cell Phone

Almost all debtors’ in bankruptcy case have a cell phone plan with the major carriers costing anywhere from $150 to $250 per year. This can be reduced to $50 per month by purchasing an unlimited plan with Sprint; Metro PCS; and many other cell phone carriers offering unlimited plan. A savings of close to $1,200 per year.


It cannot be underemphasized that shopping at Cost Co. and BJ’s will save you hundreds of dollars a year as buying in  bulk simply results in savings. There are even manufacturer coupons and Cost Co. and BJ’s coupons to help spread your dollar even further. A savings of close to $1,000 per year.

Medical and Dental Expenses

Most debtor’s do not have a Health Savings Account (HSA) which is a tax-advantaged medical savings account which are not subject to federal income tax at the time of deposit. HSA funds roll over and accumulate year to year if they are not spent. This is an essential medical savings account that helps reduce the cost of expensive health care. A savings of close to $400 per year.

Cable Bill

The average debtor pays about $150 per month on their Comcast or Verizon cable. Cutting the cord can save you at least $120 per month by simply utilizing Netflix and Amazon Prime. A savings of close to $1,500 per year.


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