By Nicole Nelson
Since personal bankruptcies are at the highest now since the laws on bankruptcy were changed in 2005, it is crucial that individuals start looking into what would help them avoid actually filing for bankruptcy. If one was leaning toward the idea of bankruptcy, it might be interesting that bankruptcy isn’t always the best option. Bankruptcy isn’t necessarily a “clean slate”. Bankruptcy can sometimes not eliminate a significant amount of debt to offset the bad credit score as well as other consequences it creates. One way to avoid bankruptcy is setting up a strict budget. With this, one can slowly bring down debts little by little. Also, one can try to make money in other ways. One can start working more hours, maybe sell or downsize extra cars/homes, etc. You can also negotiate with your creditors in downsizing your debts to them. You can do this with a debt consolidation program or a debt reduction/settlement program. Also, if you explain to your creditors that you may be facing bankruptcy, they will be more willing to help you with your payments. This is because they would most likely rather get some money that you owe them rather then possibly not getting any money. These are all, maybe not the easiest ways, but ways that one can try to eliminate debts. Debts cannot be relieved overnight, so it is imperative to realize that this must be worked on and it may take some time but in the long run it might be a better choice than filing bankruptcy.
I think it is important for companies to understand how much debt they have, and the need to pay them off.
ReplyDeleteComment above posted by Lily Mei
ReplyDeleteposted by meredith anderson
ReplyDeleteI think this is all really true. Bankruptcy does't just make the problems go away. You really need to change the way we view our money, even on a daily basis.