bankruptcy alternatives
5 ways to avoid bankruptcy
What you are about to read may stop you
making the biggest mistake of your
financial life.
In today’s debt-ridden society many people are
in severe financial difficulties, often for reasons
outside their control. Bankruptcy for many, is the
last step in a long road of financial pressures but
many opt for this solution too early and without
considering suitable bankruptcy alternatives.
Whilst bankruptcy may get rid of the immediate
pressures it isn’t necessarily the end of the
problems.
When you file for bankruptcy your life becomes
an open book for the court appointed bankruptcy
officials. They will pry into all aspects of your
life and you will be required to provide all your
financial information, including bank accounts,
savings, investments and assets. Anything that
can be sold or converted to cash, including your
family home and any valuable contents, will be
disposed of and you may still have part of your
income deducted from your salary to pay some
of your debts.
But there are bankruptcy alternatives that
may be less painful for many. Here I’ve listed 5
bankruptcy alternatives
1. negotiate with your
creditors
When you get into difficulties you should contact
your creditors as soon as possible. Contacting
them sends a signal that you want to repay them.
Lenders are anxious to get their money back and
sometimes they will go to great lengths to help
you. They may be prepared to re-finance your
debt to have it paid over a longer period with
lower installments.
They will often be prepared to reduce or freeze
the interest rate and will even cut the balance
owing up to 75%.
2. refinance your
mortgage
If you have a property, which you own outright
or on a mortgage, there is the real possibility of
you being able to refinancing your debts using a
secured mortgage or re mortgage.
Refinancing your debts involves taking out a
new mortgage, or an additional mortgage. Some
lenders will lend up to 125% of the property value
allowing you to pay all your outstanding debt and
may even have some spare cash to treat yourself.
Money
“Bankruptcy for many, is the last
step in a long road of financial
pressures...”
44 WomanToWomanMagazine.com
/WomanToWomanMagazine.com
