In the current economy, bankruptcy is a common topic to land on. When I worked in an office, I often overheard discussions about bankruptcy from fellow employees; they themselves or someone they know having to file due to debt they couldn’t possible climb out of on their own. It’s been fairly common to hear about companies, too, filing for bankruptcy in the past few years.
In fact, my sister-in-law had a huge medical emergency come up about four years ago now and had she not had excellent insurance, her and her husband would certainly have had to file for bankruptcy as the medical expenses exceeded their annual income by a double-digit multiplier.
But I also had a friend that went to great lengths to avoid bankruptcy and I learned about some of the alternatives to bankruptcy as he went through the process. In the end, he did end up filing bankruptcy, but he didn’t do it without a fight.
If you take a look at the website for the National Association of Consumer Bankruptcy Attorneys, you can get some idea of what my friend dug up. Essentially, there are cases where you’re on the brink of bankruptcy due to circumstances that aren’t just and can be legally disputed such as a lawsuit from a creditor over debt you no longer owe them.
You may also be able to work out a payment plan with your creditor. This may sound like a long shot, but in the current economy, with so many people filing for bankruptcy or running away from their debt, creditors are more willing to work with those that stick around and ask for help. It’s much better for them to work with you if you’re willing to work with them as they’ll end up getting paid back at least in part versus being completely out the money they lent.
My friend owed money on his home which was well underwater and he was unable to make the payments. He tried paying what he could afford but the lender wasn’t happy about that. He did contact the lender to try and work something out but they were unwilling at that point. In the end he decided it was best to file bankruptcy and move into a rental home that he could better afford.
Whether you’re facing bankruptcy or struggling with your finances, it’s a good idea to get to know your options as there are alternatives to bankruptcy. They don’t always work out, but they are there.
Article publié pour la première fois le 25/02/2013