Avoid Second Bankruptcy

: Reese Baker & Associates

  Filed under: bankruptcy

avoid second bankruptcyBankruptcy does not have the same stigma that it did around 20 years ago when filing meant a loss of goodwill and it carried a lot of shame with it. In this day and age, it is something that people do with no qualms. Many hard working people have seen multiple bankruptcies in his time. As an individual or as a business, however, it is usually better to avoid second bankruptcy.

Avoid Second Bankruptcy

The first thing to do if you are facing another situation where your finances have gotten out of hand is to not jump to the easy way out. Talk to your creditors beforehand as it saves them the actual hassle of having to pursue their loans. Selling debt is also not a great deal for them. Try to renegotiate your debts and come up with a plan that suits both of you. It is possible to get extensions on loans or even reduce monthly payments so that you can actually continue paying, which is a good thing. Explain to your creditors that the only option is bankruptcy which will further delay payments.

Reducing debt can be done by either increasing your income or by reducing your assets. Get rid of assets that are simply taking up space in your home or business. Downsize and pay up your debts. If you have to get additional income, do that, maybe get a second job so that you are able to stay above water. Remember that it is only a temporary fix and you should be able to get back to a normal flow once you clear your debts.

If your situation gets bad, think of a way to get around it by seeking a quick loan from your friends and family. Get it in writing and make sure you repay them.

Redo your budget and gain stability by being just a bit more responsible and stringent with your finances.Speak with your bankruptcy attorney in Houston for more information.