Why You Should Avoid Bankruptcy
Bankruptcy isn 't a magic solution that clears away all of your problems. Your debt isn 't always cleared and your debtors may take some of your property. Bankruptcy should be avoided, and with some diligence, it can be. When you avoid bankruptcy you are saving what is left of your credit history and your sanity. …show more content…
Where will you stay if you lose your home? How will you get to work if they take your car? All of a sudden bankruptcy doesn 't seem like a solution, but an even bigger problem. With a clearer understanding of the potential challenges that arise if you declare bankruptcy we can look more clearly at ways to avoid this final step.
How You Can Avoid Bankruptcy
Right now you may feel as if you 're at the end of your rope, but there are ways to get control over your debt while avoiding bankruptcy. The first thing you need to do is to get organized.
Take everything you owe and sort it out; consider subcategories such as revolving debt, credit card debt, good debt and so forth. The best way to do this is to enter everything into spreadsheet format. Enter who you owe, the amount, the interest rate, the minimum payment, and their contact information. Having this easily available gives you a better perspective of the …show more content…
Let them know you want to avoid bankruptcy and see if they can help you. Ask if they can reduce your interest rate or even decrease your total balance; keep in mind that if some of your balance is forgiven, it will likely appear on your credit report as failure to pay. If you let them know you want to avoid bankruptcy and wish work to pay down your debt they will be more inclined to work with