Bankruptcy is a thing that most people wish they would never have to go through. Just the mere thought of it can even send shivers down the spine and make bank accounts quiver. However, like anything in life and money, there are myths surrounding it. You see, going bankrupt does not always mean that you were being irresponsible with your money and are looking for a bailout. Also, if you are in financial trouble, it does not have to be your first or last option. Here are ways to stay away from filing for bankruptcy and hopefully get back on your financial track:
Negotiating and Settling Your Debts
Basically, bankruptcy is a type of liquidation that can wipe clean or erase your debts. However, it can be dangerous for you, as it involves relinquishing your property or assets. So, if you are on the brink of filing for bankruptcy, hold onto your money instead to repay your creditors and settle your debts.
Borrowing Money from Family or Friends
Though it would force you to swallow your pride to be able to ask a family or friend for financial help, borrowing money from them can save you from filing for Chapter 7. Do not be ashamed to make the approach, but make it sure that it will be worth your time and their money. To determine how much you need to borrow, make a budget, know the amount you are going to need to raise and figure out what you have been able to afford.
Restructuring Your Mortgage
If you are paying off your house, you can refinance or restructure your mortgage. By doing so, you might be able to save some money that you can put towards paying off your debts.
Making Real Sacrifices
One surefire way to make more savings is simply to cut back. If you are in the brink of bankruptcy, reassess your budget and eliminate unnecessary expenses.
By trying out some of these suggestions, you will find out that they can make all the difference that you need.