Hanging on the edge of bankruptcy is something which is common and can affect anyone anywhere. However there is a declared process which can help you recover from this terrifying ordeal in case you are in too deep with the sharks but it remains that the best way to tackle bankruptcy is by avoiding it in the first place. Nonetheless even with this revelation that you must avoid something in order to avoid its later repercussions it still remains a daunting task to avoid bankruptcy for you might find yourself in a tight financial situation which involves a lot of debts and might force you to take the road that leads eventually to bankruptcy. However no worries about this predicament anymore. The following outlined steps will see your financial life free of bankruptcy.
1. Contact your creditors and negotiate with them
As it usually is with creditors they will call you time and again to try and get you to pay the debts that you owe them. Do not let those instances make you cower away anymore. Take charge of the situation and turn the tables in your favor by arguing your situation and letting them know that you are willing to pay a certain amount to at least ease the debt that you owe. The collectors might however discourage you but this is not something to keep you lying down. Collectors are known to accept any substantial amount no matter what fraction of the dollar it is.
2. Build more income
Another way through which you can avoid being bankrupt is by earning an extra dollar in your name. you should organize yourself and use your skills to do more work be it the freelance kind which falls within your skill set to any sort of work which might bring you that extra coin, do it. The extra cash that you make will be geared towards payment of some of your debt hence lowering your chances of ending up bankrupt. Depending on your will power you can always come up with financially beneficial work from garage sales to working at a car wash etc. to get you paying some of the debts.
3. Budget creation
Coming with a clear and comprehensive budget is also another crucial step that you should incorporate. Always make sure that you account for, as far as your semi-annual finances from your daily expenses to your holiday ones while making sure that there is a space for the payment of your debts. This helps you to not only watch over your finances carefully but also leave aside some fraction of the share for your debts every time that you have to cater for each expense. This however you must do while in conjunction with your partner or you family members for them to understand this new scheme.
4. Appropriate money from friends or family
While borrowing money is not a very good maneuver when you are on the mission to avoid bankruptcy, it can still be put in to some good use when you talk to your friends and family to loan you some at little or no interest at all. Again, this is geared towards payment of the debts. Furthermore, if it is possible to acquire a loan large enough for you to repay all of the debts then that would be better.
5. Debt amalgamation
In simple terms this means putting all of you debts under one institution through which you can make payments to directly. As you will come to find out, debt amalgamation or debt consolidation serves as an easier way to handle your debts for instead of making payments to a number of creditors that you owe you pay to one only. Additionally, having your debts under one roof’ in most cases an institution will put your debt under a certain minimal rate which is extremely convenient to you.
6. Get a lawyer
Finally, securing yourself a lawyer is a guarantee that you will avoid bankruptcy. This is so because as you know each financial crisis is different from the other. Some of them are caused due to undesired law suits thus acquiring an attorney will surely give you the upper hand. Other lawyers who are trained in the art of business will sure enough give you pointers which will benefit your financial stress. However getting an attorney might cause you some financial drain but it is a worthy strategy to give a go.
Conclusively, bankruptcy is an undesired financial obstacle and in the end it is usually better to avoid it rather than handle it when you are already in the predicament. The most common questions about bankruptcy are numerous but “how to avoid bankruptcy” is probably the most important and crucial one.