With an increasing number of people declaring bankruptcy in recent times, one lives in fear of the repercussions of even the slightest financial crunch that materializes in our everyday lives. Nobody wants it, nobody likes to go through it, but the truth is that reasons of bankruptcy vary from person to person and this crisis could hit even the most financially sound people.
Luckily, there are certain defensive measures you can take to avoid having to file for bankruptcy.
Settle Your Debts
Filing for bankruptcy may often lead to liquidation which means selling off all your assets and property; thus a smarter way to go about this would be to hold onto your wealth and still pay off your creditors by negotiating on your debts. You could opt for Debt Consolidation, Consumer Proposal , both of which allow you to make payments to lenders in easy affordable sums.
Paying of your debts will keep you in control of your finances and away from filing for bankruptcy.
Borrow from Family/Friends
Do not feel ashamed of asking your friends and family for financial help. Make a budget and estimate the amount you would need to avoid bankruptcy; you will know how much you need to borrow once you subtract the amount of money you can afford to pay yourself. Just make sure you have a comprehensive plan for paying back both your family and lenders on time.
Sell Your Property
Sell off the excess property to repay your lenders, or at least raise enough money to save you from filing bankruptcy altogether. This does not mean that you empty your house, but parting from a few valuable assets may prove a fruitful investment for your future. Besides, it’s always better than losing everything you own.
Prioritize your expenditure – avoid unnecessary spending on things that could cost you everything you own. Start living your life fulfilling just the basic needs, restructure your spending pattern; save more and pay off your creditors.
Working on one or a combination of the above suggestions could save you from declaring bankruptcy. It will not be easy, but it sure isn’t impossible either. If you still feel it is too much for you to handle on your own, consult a credit counselor or personal finance consultant at GTA credit to get your finances back on track.