The third important step is to produce a simple financial statement to show your creditors. This shows how much income you have and how much money you need to meet basic expenses. Do not include debt payments on this statement.
A financial statement is an essential tool when dealing with debt problems. It presents a clear picture of individual or family income. It clearly shows what you spend and available disposable income (how much money you have left over after you have paid your essential living expenses).
Once you have completed a financial statement, you can show your financial position to creditors or courts. This will help you plan how to deal with your debts. It’s important to make sure your financial statement is realistic. It should always reflect what actually happens in practice and leave you with enough money to pay your main expenses.
Download a financial statement that you can fill in with your income and expenses.