Bankruptcy : A Victim Of A Person 's Finances Essay examples

781 Words Feb 15th, 2016 4 Pages
Everyone knows what bankruptcy is but most try to avoid bringing it up or even thinking about it. Just the thought of bankruptcy sends shivers down the spine and puts us in fear of the possible outcome. Bankruptcy has a stigma of being the ultimate destroyer of a person’s finances. According to Dave Ramsey, bankruptcy is one of the top life negative life changing events a person can ever go through with some of the others being death in the family, divorce, and severe illnesses. Bankruptcies in the U. S are on the rise with over 1.4 million filing either Chapter 7, 11, 12 or 13 last year. Even though the reasons for this high number varies due to every situation being different filing for bankruptcy should be your last option after all else has failed and you have no other way of getting out of debt on your own. Here are a few ways you can avoid having to file and save yourself from this personal disaster.
Settle/negotiate your debts, filing Chapter 7 bankruptcy can be a very risky move as all your assets can be taken as sold to repay all your debt. This clearly wouldn’t be the first option for anyone so you could see why getting with your creditors and coming up with a plan that works for the both of you would be a better option. Debt consolidation is an agreement between both parties involved to pay off what you owe without losing any of your assets, with this happens a single loan payment is agreed upon with a little interest. This could also waive your current payments…

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