Bankruptcy-Can it be Avoided? | Miki's Hope

Bankruptcy-Can it be Avoided?

Thursday, July 18, 2013

I have seen several articles lately on Bankruptcy. I agree, for Bankruptcy you do need a reputable lawyer but……


There are several options that you can try before you decide to declare bankruptcy or spending money on a lawyer only to find out you do not qualify.

1. Try consolidating your debt

This will involve 1 of 2 ways. Either contact a bank and see if they will give you a
large loan-enough to pay off all your consumer debt leaving you with one bill to
pay each month plus your mortgage. You just have to be absolutely certain that
you make enough money to cover this debt, your mortgage and still have enough
to purchase necessities.

2. Try calling the Credit Card companies

See if you can get them to lower the interest rate you are now being charged. Be
certain to pay a bit above the minimum due on each card each month. These days
credit card companies are quick to raise those rates back up.

3. Call a Credit Counseling or Debt Management company.

A reputable company of this type will go over all your income and expenses with
You to see if they will be able to help or if bankruptcy is the only solution. What
these companies will do is call the credit card companies and see if they can make
a deal. Most credit card companies will work with the Credit Counseling or Debt
Management companies because they feel that they stand a better chance of
getting their money. You will send the Credit Counseling/Debt Management
company a set amount each month plus a small fee. They will disburse the funds
to the individual companies. You probably will not hear from those credit card
companies who have accepted this again. BUT-if one of the cards you owe money
decides not to accept this type of arrangement-you will still have to pay them
separately.

Before you make any decisions always make sure you do some research. Make sure the company or Lawyer you are planning to contact and ultimately hire is trust worthy and reputable!






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30 comments :

Czjai Reyes-Ocampo said...

Great tips!
I am scared of the word 'debt' so I stay away from loans and such and keep my credit card spending to a minimum. :)

Sharon Martin said...

Some great advice and I one that I am currently doing is consolidating our debt and its allowing us to save money by doing so.

My Journey With Candida said...

Thank Goodness I let my Hubs take care of the bills.... that way I don't have to think about things like this.
You have made so many great points though.

Victoria said...

This is great advice. The only debts I have currently is school loans not enough to put me into bankruptcy luckily.

Corinne Schmitt said...

This is great advice for anyone who is considering bankruptcy. Not only does bankruptcy ruin your credit for YEARS, it is a hit to one's personal self-esteem that many find it difficult to recover from. The options you've presented save such people from the feeling of hopelessness and failure.

Pam said...

That is good advice. The only debt we have right now is our mortgage and some expensive medical bills we are paying off, but it never hurts to be prepared for bad situations.

Tess said...

Great advice! You should always try to fix your debt before submitting to bankrupcy!

Sarah-Louise Bailey said...

Fantastic advice thank you so much for such an informative post :) x

Lisa Weidknecht said...

And above all, STOP spending money you don't have!!! Great post!

Cindy Batchelor said...

Thank you so much for sharing!

Lexie Lane said...

Bankruptcy will definitely haunt you. I know it would have made my life easier but then I think about the fact that I'm contributing to the downfall of our economy this way. So in a way, it's my own guilt?

Sofia @ From PDX with Love said...

I've seen what bankrupcy does to people twice already. Sad to say, my ex-sister in law still doesn't understand the whole "debt" concept and spends as if she were a millionaire.

These are all great tips. Thankfully my husband is very finance-savvy!

Christy Maurer said...

Very good tips! People don't realize that credit cards are not your friend!

Grandma Bonnie said...

That is lots of good information. Thanks for sharing!

Rebecca Moree said...

Great ideas! :)

Loreina said...

I have student loans, but other than that, if I can't pay cash....we don't need it!

Cynthia Landrie said...

These are really great tips. My partner filed bankruptcy many, many years ago and it was so hard to get out of. Great tips! I have a Living Big on Less Money series every Friday and there is a spot to link "Frugal" and money saving posts. This would be a good one to share if you would like to. The post is up now - FeedingBig.com Thanks

Donna McMorrow said...

It is best to get out of debt. We buy things with cash and if we can't afford it - we don't buy it.

Coolmoms Cooltips said...

Thanks for the tips
It has to be a scary and overwhelming moment

Anne said...

These are great tips!

Hopefully these trying economic times have people working on better money management. I know sometimes the need to consider bankruptcy happens regardless but our society has gotten so accustomed to a living beyond our means mentality and way of life... we really desperately need to get back to a more responsible way of handling finances!

Patricia Woolverton said...

Great advice. It is not as easy as it used to be to claim bankruptcy. To many people abused it in the past and now things are changing.

Melinda Dunne said...

I really like the fact that more banks and companies are offering consolidations to minimize debt. I agree with all your tips they are very helpful.

Jennifer Williams said...

Most attorney's allow for a free consultation to go over things with you so you can see if you qualify through them. If you do need to file, you can do it on your own, it is just a lot scarier that way. When you consolidate your debt - DO NOT take a loan out on a secured item - house, car, etc. If you take out an extra loan on your house or car to cover it and then can not make the payments, you can no longer wash away that debt by filing without losing your house. Always try hard to keep unsecured debt (credit card type debt, medical, etc) in case you end up needing to file.

becca said...

we filed a year ago for bankruptcy

Cyndie said...

great advice I hope I will never have to use.

jheylo said...

Wonderful information and very helpful especially to those who plan on applying for bankruptcy.

Chubskulit Rose said...

We did a consolidation once and it work great!

nova hedges said...

Your post is absolutely correct.

Healy Harpster said...

Great and helpful tips for those who are considering filing bankruptcy!

Judy Haughton-James said...

Very informative with great tips MikiHope!

 
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