Bankruptcy, whether business or personal, is always
best avoided. There are many ways to resolve financial
problems without resorting to bankruptcy. If you suspect
you're headed for trouble, it's important to act now
to resolve it.
When you file bankruptcy, you can lose
your home, car and other assets. You may face embarrassing
borrowing or international travel restrictions. Your
will be listed in the National Personal Insolvency Index,
which can limit your career options. Contributions to
a bankruptcy trustee from your income may be required.
A creditor can even make you bankrupt.
Be aware of danger signs so you can
stop problems before they start. Do you know how much
you owe and does that amount exceed your assets? Is
debt increasing while you pay only minimum balances?
Do you take cash advances to pay bills? Have you spent
your savings, or are you drawing from your retirement
account to pay bills? Are you applying for new credit
because your current cards are at limits? Do you avoid
paying bills or pay late? Are creditors contacting you?
If you or your business are experiencing
any of these symptoms, seek help now and learn what
your options are. The sooner you face and deal with
issues, the easier it will be to get back on track.
There are numerous alternatives
Many creditors will work with you,
especially when there are circumstances beyond your
control. A temporary stay of repayment can be arranged,
or terms of a debt can be renegotiated. Mortgage refinancing
may provide money to clear or reduce obligations.
Formal arrangements can be made with
creditors. Debt agreements can freeze your accounts
and make it possible for you to repay money at a rate
you can afford, and during which time you are not charged
interest. Debtors may settle for less than you owe.
You can even get help with budgeting, reduce spending,
and free money to pay bills.
Debt consolidation loans are another
alternative, and they can be unsecured so no collateral
is necessary. You can sometimes reduce your payments
by as much as 50% and repay the loan over a period of
1 to 7 years. There are no ongoing or early repayment
penalties, although you may be charged an establishment
fee. Debt consolidation loans allow you to repay multiple
loans and debts with one personal loan on which you
make only one monthly repayment.
about your bankruptcy options