How to avoid bankruptcy
// December 15th, 2009 // debt
Here are three extreme ways to avoid bankruptcy. I have marked these as extreme ways to avoid bankruptcy because lets face it if your on the brink of bankruptcy you’ll will pretty much try anything. I would recommend that you always seek professional advice before considering bankruptcy.
Firstly, sell anything you can live without, seriously have a clean out off all your things. Do you wear that jewellery, do you need three TVs and can you live without your extensive star wars collection? You might not be able to achieve exactly what all these things are worth but you need to clean the decks. You would be surprised to find out how much your stuff is worth on eBay or Gumtree.
Secondly, are you able to borrow enough money to see you out the hole, the important bit is being able to actually pay it back, so don’t enter into any credit terms that are over an unreasonable or unachievable amount. I don’t recommend you get in more debt, I recommend that you consolidate your borrowing into one easy to manage chunk every month. The golden rule is to maintain the payments month in, month out.
Lastly, sell your house. Downsize, pay off your debts and start again. Put it down to a lesson learned. If you went bankrupt you would have to wait years before getting another mortgage, so just bite the bullet and jump before you’re pushed. Although this may sound a little drastic, it may be a better option than waiting until you are forced to give up your house! Downsize or start renting while you get all of your outstanding debt paid off. That way, you will have a clean slate and can start to rebuild your life once again.
Although these three ideas are very extreme, some people will have used these to get out of debt and maybe it could be you!
