How to Avoid Bankruptcy

By Craig Rozelle

Bankruptcy should try and be avoided at almost all costs and here are a few tips in order to avoid filing for bankruptcy. If you declare for bankruptcy, you will find it difficult to get any type of credit or financing at decent rates for a long time after filing. You will have to start from scratch to build your credit back up again, and it will be a long and possibly painful process. But in spite of the serious drawbacks associated with bankruptcy, more and more people seem to be filing as a first option rather than as the last alternative. Bankruptcy is the final step you should take after all else has failed. The first tip to avoid bankruptcy is to sell your assets on your own. Sell your house and move into a smaller one, or sell your car for a cheaper one, or just sell some of the items in your house that you no longer have use for. If that is not enough work more often. Get a second job to help pay some of the bills that are pilling up. Another option is to reorganize your debt so that you can pay it at the timing that better suits your needs.

Sources:
http://www.debtsteps.com/how-to-avoid-bankruptcy.html
http://www.ihatedebt.com/
http://credit.about.com/od/debtmanagementsolutions/tp/how-to-avoid-bankruptcy.htm