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Four Important Strategies for Avoiding Bankruptcy

Four Important Strategies for Avoiding Bankruptcy

Bankruptcy is one of the top five stressful events a person can experience in life, with severe illness, divorce, disability and loss of loved one completing the list. It leaves deep wounds not only to a person’s emotional health but also to his credit report and financial well-being. This post will shed more light on what you need to do to avoid bankruptcy.

Sell Your Property

When you apply for total bankruptcy, it means you allow the trustee to put up your property for review. The trustee makes the decision on what he wants to liquidate or sell so that he can settle your claim. This is very risky, since the trustee can sell all your belongings without considering how you will survive. You can avoid such scenarios by selling some of your belongings before you reach a point where bankruptcy becomes the only option. 

If you have a debt to settle, for instance, determine which item you can afford to part with. It can be that second-hand car, old furniture, a collection of antiques or any other valuables. You can list them for sale on Craigslist, eBay, Amazon or a public auction. 

Settle Your Debts

Chapter 7 of bankruptcy involves erasing all debts a person has. While this may be a reprieve to a person who has a lot of debts, it can lead to the person relinquishing his property or assets. The best approach to take if you are on the brink of filing under Chapter 7 is to contact an attorney. Your attorney will buy more time as you make arrangements to settle the debts. For experienced and highly effective bankruptcy attorneys, click here

Review Your Mortgage

You need to review your mortgage and restructure it. Come up with a new repayment plan or refinance the mortgage altogether. Doing so will help you develop a new repayment plan, which will then give you a chance to save some money to put toward repaying other debts. This is worth it if you can avoid getting your home foreclosed or filing for bankruptcy. 

There are two ways restructuring your mortgage will help you avoid bankruptcy. First, it allows you to come up with a new repayment plan under the same terms of the original mortgage. Second, you can refinance the mortgage with a lower and adjustable interest rate spread over a long period of time. 

Ask for Assistance From Friends and Family

It takes a lot of courage to ask friends and family members for money. But when you are nearly bankrupt, you need to swallow your pride and get the courage to ask for help. Come up with a budget and see how much you will require to avoid being bankrupt. Know what you can afford on your own to allow you to identify how much you need to ask for.

Being bankrupt is not something you want to consider, especially if you have a lot of debts to settle. The suggestions discussed above will help you avoid bankruptcy. You may get results by following one or a combination of both.

Media Contact
Company Name: Bright Bankruptcy Firm
Email: [email protected]
Phone: (817) 754-1300
Country: United States
Website: http://www.brightbk.com/texas/fort-worth-bankruptcy-attorney.php