Posts Tagged ‘Avoid Bankruptcy’

Making a bankruptcy filing is an acute move, not a fast fix. It is a long, distressing process with a massive stigma, and you are probably not going to be ready to get any sort of credit for 10 years thereafter.

Out of stupidity or foolishness, more folk appear to be using bankruptcy as a first option, rather than a final resort. Before you do it, confirm you have considered each alternative. If you have not attempted debt consolidation or negotiation, you actually should. It’s better to sell everything you own than it is to go into bankruptcy. Take a good, hard look at your life, and realize that there are only a few true ‘basics’: you can do without ever. Your place is perhaps full of quite valuable things that you never use, so bite the bullet and dump them.

Briefly take away your debt payments from your earnings, and live like someone that earns that much. You’re going to lose most everything you own if you declare bankruptcy, so you may as well attempt to sell it yourself at a keener price and avoid the bankruptcy issue altogether. Being broke is such an indignity that you must at least try going to your chairman and asking for a pay rise or promotion. In fact, the worst they can do is say no.

They go to discover about it anyhow if you declare bankruptcy, and they’d ask why you did not come and ask for their aid. Also, if you are married and just one of you works, attempt to get the other a job – you never can tell, it would even be fun. One of the finest things to do when you are considering bankruptcy is to open a letter fully to everybody you owe cash to, letting them know. Make it a particularly clear threat: “if I can’t find some way of paying my liabilities then I’m going to be made to file for bankruptcy”. Bankruptcy laws change terrifically relying on where you are. Try and get a counsel – you might think that you cannot afford one, but plenty will work ‘pro bono’ (for free) for folks who actually need a barrister but cannot pay.