Before you start exploring your bankruptcy alternatives, ask yourself this question: Why do I want to avoid bankruptcy? Obviously no-one wants to go bankrupt, but for most people it’s not just an emotional decision. Your desire to find an alternative to bankruptcy is also very practical.
Why do you want to avoid bankruptcy? Your answer is probably quite obvious: you want an alternative to bankruptcy because you plan someday to buy a car, or a house, and so you don’t want to file for personal bankruptcy.
You want an alternative to bankruptcy because you have a financial goal: you want to buy a car or a house. That goal is very important, because without goals it is very difficult to accomplish anything.
Our advice: if you want to avoid personal bankruptcy, set a goal for yourself. Write it down. Then you can work toward your goal.
Here’s an example: You want to buy a $5,000 car, but you currently have $6,000 in debts, so the car lender will not lend you the money. Your goal is to reduce your debts so that you can buy the car.
Your goal must be specific. Reducing debts isn’t a specific goal. A better goal: I want to pay down my debts by $500 each month, so that one year from today I am debt free. That’s a good, specific goal.
But is it achievable? Only you can decide. To acheive your goal, start with a personal budget. Don’t let that word scare you. A budget is simply a list of all the money that comes into your household each month, and all of the money that goes out.
Read our article called Fix Your Debts on Your Own – Start with a Personal Budget and get started on reaching your goal of avoiding bankruptcy!
Posted by Editor Bankruptcy Alternatives @ 8:46 am