How to Avoid Bankruptcy

Source – Debt can be tough to avoid in the modern times. Credit cards have only promoted debt culture and nowadays, almost everyone owes some amount of money. While debt may be easily payable for some people, most of us struggle a lot, and this debt can lead to eventual bankruptcy. Bankruptcy triggers many red flags in our mind and is something that we all want to avoid. However, this is easier said than done as many people fall prey to bankruptcy thanks to their ever-increasing debts. This is why we have come up with some tips and tricks that you can use to steer clear of bankruptcy and remain debt-free.

1. Strategically Sell Some of Your Assets

Whenever you think that you are on the verge of going under, the first thing that you need to do is sell some of your assets. We are not telling you to sell everything you own. Rather, it would be wiser to be strategic about the items you list on the market. If there’s something that is going for a very high price in the market, sell it. However, if you feel like the market’s a bit down and you won’t earn as much on an item, it’s wiser to hang on to it for a little while. If push comes to shove and you must have a certain amount of money ASAP (to pay back your debts), don’t wait around for the market to readjust and sell everything you can spare.

2. Ask Your Friends and Family to Help

The next thing that you can do to avoid bankruptcy is asking your friends and family (especially parents and siblings) to help you out. Remember, there is no shame associated with asking for help, and it sure beats the alternative of being forced out on the streets. Call the people you know and trust the most and comprehensively explain your predicament to them. Chances are that they will be more than happy to assist you in your time of need. However, don’t spend the money they give you on lucrative and useless things, and use these funds solely to pay off your debts.

3. Renegotiate Your Debts

Before we even begin describing this method, know that this is something everyone hates and loathes, and it won’t be doing your reputation any favors. Now that we’ve got that out of the way, it is time to discuss how renegotiating your debts can help you out in times of trouble. Contact the people you owe money to and let them know why you can’t pay them on time. Remember to come up with a valid reason and don’t say something absurd like you spent their money on a trip to Disneyland. Remember that this process of renegotiations should always be considered a last-ditch effort and should not be a part of your plans from the get-go.