3 Ways to Avoid Filing for Bankruptcy

close up of the word debt on notepadIn one study, researchers from NerdWallet found that the average bankruptcy rate among US counties was 224 fillings for every 100,000 people from April 2015 to March 2016. If you don’t want to file for bankruptcy, here are some tips that could help. Keep these tips in mind to avoid filing for Chapter 13 bankruptcy in Sandy.

1. If you can’t pay off all your debts, settle.

Mortgages, credit card bills, and other loan types can pile up. And if you don’t know how to take charge of your finances, you can be in the fastest lane to bankruptcy. If you can’t pay off all of your debts, consider a debt consolidation. This is where you get into an agreement with your lenders to repay your loans but without losing your valuable assets. Some people who go into debt consolidation turns their collective debts into a single loan, and they pay if off monthly. What’s great is that they get lower interest rates compared to many loans.

2. Try borrowing money from friends and family.

You may not like it, but sometimes, you have to swallow your pride and ask family members and friends for financial help. Unlike banks and other lending companies, you can ask people you know for lower interest rates or even none at all. Just make sure you’re borrowing without your limit and be diligent in paying it all back.

3. Sell your assets.

If you do end up needing to sell some of your properties and assets to pay off existing debts, think it over and choose the lesser of two evils. Would you rather part with one or two assets or risk losing all of your properties? If you don’t want to sell real estate, consider selling your car, motorbikes, and other possessions of value to pay off loans that just eat you up with the high-interest rates.

Protect Your Financial Health

Becoming financially literate can help you protect your financial health. Consider these tips if you want to avoid filing for bankruptcy in the US.

About the Author