Whenever most people find themselves in a financial pickle, the only move one might think is feasible is filing bankruptcy. Although filing bankruptcy has the advantage of relief from stressful debt payment and hassle, its disadvantages are severe. One of these disadvantages is having a poor credit rating that will prevent you from gaining or enjoying any financial form of credit such as credit loans.
Due to these adverse effects of filing bankruptcy, debtors should try and find ways and methods of avoiding filing for bankruptcy. One of these methods is by refinancing one's mortgage and other payments. This will reduce the amount of money you will be paying out monthly to your creditors and hence enable you to save and repay your debts.
Another effective method one can use to avoid having to file for bankruptcy is by arranging a meeting with your creditors. During this meeting, you will discuss a suitable arrangement with your debtors where you will both agree on a time frame and specific monthly pay rate that is acceptable to both parties. If successful, this arrangement will give you ample time to repay and settle your debts and hence prevent you from having to file for bankruptcy.
The other method that one can use in order to avoid filing bankruptcy is debt consolidation. This involves coming up with an arrangement with your lenders where they will repay all your pending debts without losing any assets. This will be considered a loan, which you will repay on a monthly basis and at a lower rate hence hugely reducing the size of your debt.
A last tactic one can use to avoid filing bankruptcy is by selling a few belongings that have some value such as a second car, jewelry, art collections, antiques, etc. This action will go a long way in giving you the capital needed to reduce your debt and probably even clear it. It is therefore quite clear that one should first try out other debt repayment methods before filing for bankruptcy.
Due to these adverse effects of filing bankruptcy, debtors should try and find ways and methods of avoiding filing for bankruptcy. One of these methods is by refinancing one's mortgage and other payments. This will reduce the amount of money you will be paying out monthly to your creditors and hence enable you to save and repay your debts.
Another effective method one can use to avoid having to file for bankruptcy is by arranging a meeting with your creditors. During this meeting, you will discuss a suitable arrangement with your debtors where you will both agree on a time frame and specific monthly pay rate that is acceptable to both parties. If successful, this arrangement will give you ample time to repay and settle your debts and hence prevent you from having to file for bankruptcy.
The other method that one can use in order to avoid filing bankruptcy is debt consolidation. This involves coming up with an arrangement with your lenders where they will repay all your pending debts without losing any assets. This will be considered a loan, which you will repay on a monthly basis and at a lower rate hence hugely reducing the size of your debt.
A last tactic one can use to avoid filing bankruptcy is by selling a few belongings that have some value such as a second car, jewelry, art collections, antiques, etc. This action will go a long way in giving you the capital needed to reduce your debt and probably even clear it. It is therefore quite clear that one should first try out other debt repayment methods before filing for bankruptcy.
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