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Tips To Avoid Filing Bankruptcy

Getting rid of bankruptcy

Tips to avoid bankruptcy

When you are in debt too much and you can’t find any other way to get rid of it, you opt for filing bankruptcy. However in any conditions, filing bankruptcy is not the only options you have with you. There are many other alternatives you can use to get rid of debt. Filing bankruptcy should be the last resort you have got. According to many estimates, filing bankruptcy is in the list of top 5 negative life altering changes in your life. Filing bankruptcy is that negative mark on your credit report removing which will take years and ruin your too great extent. It leaves deep wound on your credit report, healing which will take a very long time and too much effort. If you are on the verge of filing bankruptcy then don’t take this big negative, there are ways to come over this situation without even filing bankruptcy. Here are of the alternative options for filing bankruptcy.

  • Negotiate with your debts

Before you go for filing bankruptcy, you should try and settle down your debts. You can try and negotiate with your creditor. Filing bankruptcy and then cleaning and erasing off it from your record are very difficult. Hence try and negotiate in the best way and convince your creditor to reduce the amount of debt or give you sufficient time to pay it back. You can go for debt consolidation, where you can settle down your debt by losing some of your assets. You can go for a reduced payment plan where in you can settle your debt slowly and gradually without having the need of filing bankruptcy.

  • Sell your assets

When you are filing bankruptcy, all your assets and your property is taken away anyway and you are declared bankrupt. In bankruptcy, a liquidator will be hired who will decide which property to sell and which not and will decide how your claim will be settled. Well now you can also do this by yourself. Instead of filing bankruptcy and declaring to the world and then losing your property, you can sell your property and assets by yourself; pay off your debts but without destructing your credit report for years.

  • Borrow funds

For a moment put up your self-respect on side and consider the consequences of filing bankruptcy. Not good right? It will take lot of effort to put your pride aside and ask for the funds from friends and family. But however this is the right thing to do for the situation. You are not taking away; you just have to borrow funds from them. Return them anyway with interest and you will be fine by borrowing from them. Make a budget and check how much money you will need for avoiding filing bankruptcy. See which friend or relative of yours is in a capacity to pay such an amount. Make sure the person you ask the funds from know the exact position of yours and have enough time to give you for repayment.