A Look at Some Bankruptcy Alternatives


If you have ever been in a situation of bankruptcy, then you know that there is nothing funny about the whole scenario because it puts you on the spotlight, paints a negative image about your credit worthiness and basically puts you between a rock and a hard place in matters to do with finances. More so it affects you career because even potential employers find it hard to trust you financially.

Since we know that it can be mentally disturbing to be declared bankrupt, we ought to look at the alternatives that are available before we can finally resort to filing insolvency, as the last resort. If the filing is not done by your creditor before you do it yourself, then you have a perfect opportunity to look at the alternative ways of dealing with the situation.

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Remember that filing bankruptcy will entail some gross costs. This is because you will need to pay a bankruptcy attorney who will represent you, you will need to pay for the forms as well as meet other costs that may arise thereof. You may find yourself losing much more money that you thought you would save before the whole process goes through.

Before filing, you need to look at a few possibilities like writing to your creditors and asking them to consider giving you more time to sort them out. The limitation with this option is that the letter may not be legally binding and your creditors may turn against you later. For this reason you might need to make it legal by involving either an attorney or an insolvency court. This will prevent the creditors from taking any further action against you.


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