Ways to Avoid Filing for Bankruptcy

Posted by: Janielle Viggiano

There are many ways to avoid bankruptcy. Here are some of the most important ways:

1. Find out if bankruptcy is worth it
2. Set up a strict budget
3. Try negotiating with creditors
4. Raise money
5. Opt for a lifestyle that will help you financially
6. Debt settlement
7. Debt consolidation program
8. Debt management
9. Payday loan consolidation
10. Do it yourself plan

(Strong, 2009), (Debt consolidation care, 2009)

Some other alternative options would be to sell your assets. After you declare bankruptcy they usually take almost everything of value you own so it’s better to sell the things you no longer use to avoid filing for bankruptcy. Another way is to work more, pick up more hours at work to earn more money. Or even get another job. You should also brush up on your laws when it comes to filing for bankruptcy because they differ by geographic location. Lastly, communicate your options. According to debt steps, “Make it clear that if you cannot find a way of paying your debts, you will be forced to file for bankruptcy. This is one of the best things to do when you’re considering bankruptcy. Most creditors would rather have you pay back a fraction of what you owe than not be able to get money from you as a bankrupt.

Sources: http://www.thedigeratilife.com/blog/index.php/2009/04/20/how-to-avoid-bankruptcy-go-bankrupt-steps-solvency/

http://www.debtsteps.com/how-to-avoid-bankruptcy.html

http://www.debtconsolidationcare.com/avoid-bankruptcy.html