Some people make the mistake of treating bankruptcy as the be-all and end-all of everything. They think that once you get to that point where your debts far outweigh your assets and the chances of paying them off is not likely to happen anytime soon, the situation is ripe to file for bankruptcy. They think they cannot avoid bankruptcy altogether.
Stop right there.
Bankruptcy is not the only way. It is not the only solution. What you believe is an unsolvable problem may turn out to be quite solvable, if you only take the time to weigh your options well.
Always keep in mind that filing for bankruptcy has the possibility to be devastating both economically and emotionally. While there is less public stigma attached to the act for filing for bankruptcy these days, it could still do things to your confidence in making important financial decisions.
One of the positive aspects of filing for bankruptcy is that most bankruptcy cases are granted. So it is instant relief from debts versus toiling for years to pay off your debts. However, contrary to popular belief, bankruptcy is not an easy way out of a sticky situation. And often you can avoid bankruptcy in fairly easy steps.
Whether you are filing under Chapter 7 or Chapter 13, the end result is almost always the same – extensive damage to your credit and long-term economic issues. Now, you know, of course, what this means. These credit issues brought on by bankruptcy would cause many problems in the years to come.
So what, then, are your options to avoid bankruptcy?
That, my friend, is the question we’ll be exploring in the next few blog posts.
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