How can I Avoid Bankruptcy?
There are three obvious strategies to avoid bankruptcy: First, deal with your debts on your own. This means you reduce your living expenses (or increase your income) and gradually repay your debts. If possible, you may consider a debt consolidation loan to repay your high interest debt, such as credit cards, and replace it with a lower interest bank loan. Second, you can avoid bankruptcy through credit counseling. There are both not-for-profit and for profit credit counselors that will work out payment arrangements with your creditors through what’s called a debt management plan. You repay all of your debts in full over a two to five year period, often with little or no interest charges. Finally, a formal legal settlement with your creditors may be an option. In the United States it’s called a Chapter 13 Wage Earner Plan; in Canada it’s called a Consumer Proposal; in Australia it’s called a Part X Arrangement. Regardless of where you live and what it’s called, a legal settlement with y
If you find yourself in such dire financial straits that you are considering bankruptcy, it is important to know that bankruptcy is not your only option. Before you pursue bankruptcy as an option, it is important to consider ways that you can avoid bankruptcy. To avoid bankruptcy, the first thing that you should do is create a detailed list of how you spend your money. From this list, determine how much money you are spending on your wants and how much money you are spending on your needs. You may be surprised to find how much money you spend on things you don’t really need. Once you distinguish your wants from your needs, decrease the amount of money you spend on your wants. The money you save can go toward paying off your debt.
A unsecured debt consolidation loan from our partners are waiting to help non-homeowners consolidate all of your unsecured debt and avoid bankruptcy. Their online unsecured loan application process is fast and simple. This new money can save you hundreds of dollars per month if you choose to use your loan to pay off existing debt – especially high rate credit cards. You may be surprised to know that even if you dont own a home, you could qualify for their debt consolidation loan. You can use the money for diverse purposes that include college tuition, start or improve your own business, or even to pay off a high rate auto loan or buy a new or used car. You may also choose to roll all your unsecured debt into this new loan. By getting this loan and using it to pay off credit cards, youll be pleased with how much less interest youll be paying. Once youve paid off your credit cards or other debt, youll have a fresh start with your finances and can set up a budget within which you can live
Be careful of debt consolidation companies, they usually cost you a lot more in the long run. Speak with a Bankrutpcy Attorney, the initial consultation is usually FREE. They can usually help, even if you do not file for bankruptcy protection. If you qualify for a Chapter 7 Bankruptcy, ALL of your non-secured debts may be discharged (poof).
