5 good Ways to Avoid Bankruptcy
The whole point of filing for bankruptcy, if you don’t already know, is to sort of put up a red flag saying “Hold up! I’m out of money. I’m sorry, but I can’t pay you.” This forces banks and other debt collectors to back off and go through extensive battle to get anything at all from you. Generally, people only declare bankruptcy when they are extremely desperate because while it can save you in the short term, filing for bankruptcy pretty much bombs your credit.
When you file for bankruptcy, it usually stays on your record for ten years, which tells future business associates “Hey, hey, hey. Hooold on. This guy’s not too good with paying people back.” Luckily for you, bankruptcy’s not the only option. Follow these steps and you should be able to pay off your debts within a few years.
1. Part With Any Useless Belongings
Most people have a good amount of things that they don’t necessarily need. Things like extra furniture, jewelry, and antiques can usually sell for a good bit of money. Try Ebay and local classifieds.
2. Talk with the People You Owe Money To
Most of the time, whomever you owe money to will be more than happy to negotiate a settlement plan with you. Think about it, if you don’t have the money they are asking for, then they can’t get it. They would much rather get at least SOME of that money than none of it. They might lower your monthly payments or decrease your long term interest rate.
3. Settling your Debts
When on the brink of bankruptcy, debt settlement should come into consideration. Choose the debts that have been charged off or sent to a collection agency, and once an agreement has been made, pay immediately. They do expect to be paid in full once an agreement has been made.
4. Try to get financial help from family members
Although it might not be the best choice to consider, borrowing money from family or friends is not a bad idea in some circumstances. Before you go asking people for money, take the time to calculate how much money you need to avoid bankruptcy and how long it will take to pay them back. This option can be difficult for some people because it can also ruin relationships, between family members or friends.
The last and most important get hold of a good debt professional. There are companies out there that can help you achieve your goals. Have a look at the new emerging trend of Attorney Supervised Debt Settlement. Give certified Financial Solutions a call they are more then willing to help you. Consultations are completely free.
Their website is http://certifiedfinancialsolutions.com visit them and give them a call.
