It is understandable that some of us can have a huge difficulty with staying afloat with our finances. The time might come at some point in your life when the debts and loans you have taken out become too much, and this can cause you to fall into the realms of filing for bankruptcy. No one ever wants to be the one to file for bankruptcy, which is why today we are going to talk about ways to avoid this.
Selling Your Assets
One of the best ways to make a little bit of money to keep you going is to sell some of your belongings. Take a bit of time this weekend to go through your home and see if there are any pieces of furniture and jewellery as well as clothes which you could put for sale on eBay or your front yard.
Selling your own things will help to declutter your space as well as make some money to pay off your debts. As soon as you see yourself starting to struggle with debt payments, you want to take action right away and sell some assets in order to pay them off. This is the way you will stop yourself from falling into bankruptcy.
Pay Your Debt
If you can afford to pay off your debts over a long period of time, it might be worth reading up on chapter 13 information because if you file for chapter 13 bankruptcy, you would need to die to failing the tests for chapter 7. At the end of this month print off your bank statement and take a while to go through all of your spending habits. If you see a lot of small spendings which are unnecessary, work it cut these out of your routine and this money can be used to pay off your debts.
Ask For Help
If you are seriously tittering in the edge of filing for bankruptcy, the best thing you can do for yourself is ask your creditor for help. Your creditors will always prefer to at least get some money from you, rather than nothing at all so even if you can’t afford the full payments, you may be able to work something out with them. Let them know that you want to pay off your debts but you can only afford x amount, and they will likely be able to come to an agreement with you that spreads the cost and gives you more time.
Consumer credit counseling is a great idea if you struggle to reach an agreement with your creditors. A counselor will be able to offer you advice and help on how you can rectify your situation and prevent you from falling into bankruptcy. They will provide you with a debt management scheme and aid you in getting back in your feet again.
Ask Family and Friends
If all else fails, the only other option you may have is borrowing the money from your family and friends. It is never a great idea to borrow from your family or friends because it can create friction, however sometimes you need to turn to the people you trust the most in the world for help.