My Zeo

  • Home
  • About
  • Blog
  • Lifestyle
  • Health
  • House
  • Pets
  • Fitness
  • Money
  • Contact

How to Avoid Bankruptcy: 5 Ways to Beat Being Broke

May 11, 2021

Did you know that around 750,000 people go bankrupt in the US each year? While bankruptcy levels are falling, it is becoming even easier to get embroiled in debt. But do you know how to avoid the final result,  bankruptcy?

Even when it seems like the end is near, you can still employ some tactics to get your finances back on track. Read on as we discuss how to avoid bankruptcy.

1. Sell Assets

You are quite likely to have accumulated assets on your way to this point. By selling them off, you can use the money to clear a large chunk of the debt. This could help stave off bankruptcy.

Make sure items and assets you sell do not impact your current ways of living. For example, don’t sell a car you need to travel to and from work in. Instead, sell large items and downsize, using the excess cash to clear debts.

2. Cut Spending

The next step is to create a spreadsheet. Add your spending for the month, including bills and luxuries. Try to identify ways in which you can cut back on your spending.

Once you have this, bring in strategies to reduce your spending. Get rid of credit cards. Cut spending on luxuries and entertainment.

3. Communicate with Creditors

When you owe money to creditors, you will be given a timescale in which you can pay back debts. If you ignore the creditors, they will come looking for payment in the form of assets. This brings you one step closer to filing bankruptcy.

This is not what creditors want, because they won’t get what they are owed when you do go bankrupt. Instead, talk to them and arrange payment plans. They may be able to give you added time or come to an alternative arrangement.

4. Increase Your Income

Once you have cut back, to avoid calling the bankruptcy attorney, you need to increase your income. This extra money needs to be used specifically to clear away debts and pay off creditors. Do not increase your income and spend it on other items, leaving yourself in the same position.

One answer is to get a second job. If you have a partner, get them to start working on one as well. While it may be hard and take up the spare time you have together, it will go a long way to helping you out.

5. Consider Consolidating

If you are able to qualify, you may be able to get a larger, lower-interest loan to pay off high-interest debts. However, this should be a long-term solution. If you will start spending once again once you do not feel the pressure of debt, then avoid this method.

You can also consider debt settlement. This is where a debt relief company negotiates with creditors. A smaller amount is paid off and the debt is settled, usually, in the knowledge, they will get nothing if you go bankrupt.

Speak to an Expert on How to Avoid Bankruptcy

Now you know how to avoid bankruptcy, speak to an expert. A financial advisor may have other methods that you can combine with these tactics.

If you found this article helpful, then visit the rest of our blog. With everything from financial advice to business help, so we can help you get back on track in the coming year!

Leave a Comment · Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

About Me

Hello all!!!! I'm Darcy and I recently started writing on My Zeo about health and fitness (and part of that important health equation is sleep!). As we are all super busy with life, I try to integrate how to stay fit, relax and be healthy and happy through everyday life.

Facebook

My Zeo

NEWSLETTER

TeraHemp

Realistic Tips for Those Who Want a Dog in College

Heading off to college is an exciting milestone in a young adult's life, filled with new experiences . . .

Read the Post

9 Things Your Chronic Cough Might Indicate

A chronic cough that won't go away isn't just annoying; it might indicate a deeper health issue you . . .

Read the Post

What is a Diagnosis Code? – Definition & Uses

Effective and standa­rdized communication is crucial in the healthcare industry, given its . . .

Read the Post

Elevating Workspaces: Exploring Office Improvement Costs and Renovation Consultants

Office improvement refers to the expenses associated with renovating, upgrading, or improving a . . .

Read the Post

Halloween Safety Tips for Pets

Spooky season has arrived! Do you know how to take care of your animals during Halloween? This . . .

Read the Post

Follow Us Online

  • Facebook
  • Instagram
  • LinkedIn

Copyright © 2018 myzeo.com

Copyright © 2023 · Simply Pro by Bloom Blog Shop.