Why Personal Bankruptcy Might Not Be the Best Idea

Most will be in bad financial situations at some stage in their lives. These are hard times and money is tight, jobs insecure, and mortgages are exorbitant for most in that situation. The answer for staving off personal bankruptcy is not always apparent and many seek debt counselling before taking that step. The bottom line, however, is why take it at all because once you have been bankrupt things alter substantially regarding your credibility.

The loss of all one possesses is just the start as the bank and creditors will sell you up. They don’t care about sentimental attachments or family inheritance, and so forth. Out it goes and with it your entire life is rolled up into the scraps that are left and your memories.

Why did that happen? You will ask yourself that question over and again. You need to start over but how? Where do you go to live? How do you live? Who wants to employ you?

Some kind relative or friend may offer you their garage or shed to live in and you move what’s left of your life into it. It’s cold, unfriendly, and dreadfully inconvenient. The facilities are not connected so you have to go into the house to use the bathroom, shower, and even cook a meal. That soon wears thin on the generosity of the one who has to live with it, and you.

It might be alright if it is your parent or sibling but even they are feeling the strain. Then there are shared costs. How do you compensate them for your share of the bills, such as electricity?

Over all going into personal bankruptcy is not a good idea and steps should be taken early when financial stress looms. That means getting a job in another city, putting a wall around you and repaying all your debts long distance. This is possible because of transfer of money. Let Companies know that you are going to pay them by deeds not words. They will back off if you make regular payments from your wages.

If you run a business and this happens to you it is not so easy to simply walk away but you can either take in a partner, who will contribute financially, or wind it up yourself. If it is a retail premise, then sell the stock at a greatly reduced price. All you have to do is recover what you laid out for it plus the rent. Again let the creditors know that you are going to repay them every cent you owe and follow it up.

That way one can keep home and goods out of the hands of their hands and nothing much will change. It will take time to straighten your life out but at least you won’t have the stigma of bankruptcy hanging over you and you will not be dependent on others for a hand-out.

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