Bankruptcy is a process whether your debt is fully absorbed or the court establishes a repayment plan on how to sort your debts out. As much as bankruptcy can be a great relief and gives you peace of mind from your debtors , it has very bad consequences to your credit rating and financial status. You will also lose your property and assets. However there are ways to avoid filling for bankruptcy.
Tips On How To Avoid Bankruptcy.
- Debt consolidation program. You can have a minimum ammount of money leave your account every month or every forthnight to your creditors account. It might take a long time to pay but you will eventually get there. At least your creditors will know you working towards sorting your debts. A debt consiladation program is where you consolidate all your bills into one easy monthly payment by taking out a low interest loan to pay up your debts.
-Your creditors can also help you avoid bankruptcy by pleading with them to reduce your monthly interests or reduce the ammount of money you owe. Express your willingness to pay the debt and your financial difficulty and they will listen to you. Your creditors are not willing to accept little or nothing at all.
- You can sort the help of a consumer credit counsellor to talk to your creditors to reduce your interest rates and the ammount you owe, if they wont listen to you.
- Get help from family and friends. It's been said not to mix business with family and friends, but when you are at the point of filling for bankruptcy, you kind of don,t have a choice but to ask for their help. But always have a plan on how to repay them.
-Always have a repayment plan to how to settle your debt. Instead of filling for bankruptcy, sell some of your assets and use the outcome in clearing your debts.
- You can consider speaking to good bankruptcy attorneys . California bankruptcy attorneys can help you with good , honest and professional advice on how to handle bankruptcy.
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