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Doesn't Everyone Need To Know More About Bankruptcy? Joking Yes But Here's Help For Those Who Need It!
Certainly this article is about bankruptcy but I want to tell you up front that you may come across the word 'budgie'. Don't worry, the article is not about birds; I do like budgies though. I use the word 'budgie' or 'budgies' sometimes in place of budgets because a budget is known to get budged and also as it makes me laugh!
Okay, so bankruptcy is a procedure which allows a debtor (someone that owes money to someone else) to get a court ordered exemption from his debts. In some cases bankruptcy can act as a valuable method to get rid of debts. But everybody who faces any financial difficulty should not file for bankruptcy.
Is bankruptcy an option in my case?
There is no quick and easy reply to this question. This is something you should discuss with a bankruptcy attorney or a credit counselor as they can fully evaluate the benefits and costs of bankruptcy. The kind of debt you have can be a relevant factor and really the final decision is always up to you. Just make sure you know the consequences and benefits fully before you make a final decision. Allot of bankruptcy cases could have easily been prevented with some diligence and a tight budget.
What are the substitutes to bankruptcy?
The options are numerous. Your financial situation is primarily going to determine your options available. So, get some financial counseling before filing bankruptcy and make sure you know the full consequences of your options.
Here are some possible options available:
It means allotting a nice deal of control, you can employ a financial manager for paying your bills, and to place you under an "allowance" until your financial conditions are back in proper order. This can be especially helpful if your financial problems are a result of bad spending habits. In North America we are told we can have anything we want without paying for it (credit) and that if it's bright and shiny, you probly deserve it so don't restrain, go ahead and rack up that credit card. Ooopsss..... bit of a rant there but I think you get the idea. For a less encroaching form of management by simply having a financial counselor help you create a budget. Just remember that budgets only work if your super disciplined and don't have problems with buying bright shiny objects (:--).
"Working Out" Your Debts
Financial counselors can be really expensive so choose one wisely if youre going this route. Look for a non-profit counselor in your area. Creditors know it can be hard to collect money whether you declare bankruptcy or not. Know that collection agencies take large commissions for collecting and litigation can also be expensive, time consuming and forcing debtors to file for the big 'B' doesn't guarantee recovery of debt anyway.
Do you own a house that you've been paying off for a while? If you have some equity in it there's a good chance you can refinance it and get a really low interest rate and pay off your debts faster. Single low payment companies should be avoided as they often have high interest rates. Again I say the budgie may be best. Loan packages are probly the safest through your bank or credit union.
Avoiding Credit Repair Scams
Before or after bankruptcy, some companies attract debtors and offer them packages such as repair bad credit or even promise them to remove a bankruptcy from your credit history. Allot of these offers are fraudulent. There are way's to boost your credit rating but I'll save that for another article.
Oh, on another note, stay away from "bright shiny objects" (got that term from my neighbor). Simply put, don't put yourself in situations of drooling over items that are not in your budget. If it's something always on TV, turn it off man! The budgie is very important and could get you out of this mess without giving into what seems the only route, that being bankruptcy. Depending on your situation of course. If your several million in the hole and your only experience is working fast food joints (has made millionaires out of many btw) well, your either going to need lot's of prayer (call me if you go this route) or file for bankruptcy. I hope this has been of some help or at least a tad humorous to brighten your day.
About the Author: The above information about Northwest airline bankruptcy and airlines bankruptcy submitted to us from Chad McDonald at: http://www.northwest-airline-bankruptcy.info