WHY YOU SHOULD AVOID BANKRUPTCY AND HOW TO AVOID BANKRUPTCY

Very many unscrupulous people have taken the provisions of various chapters of the bankruptcy law as their solace.

They go on reckless spending knowing that whatever happens, they will be free from debt some day. Unknown to them is the hidden unquantifiable cost associated to bankruptcy.

The fact alone that one has once been declared bankrupt is enough to psyche prospective business partners into believing that you have a questionable character. Unless you take time to explain to them the reason why you were declared bankrupt, a lot of folks will be skeptical about doing business with you.

I agree that it is not all those that go bankrupt that are responsible for it. I know a newly married couple that went bankrupt few months after marriage. What happened was that the Guy had accident four days after their marriage.

This accident kept him out of work for three months. As if that wasn't enough, his newly married wife with pregnancy developed kidney problem. And all these led them to file for bankruptcy.

Now, the couple described above has no control over what eventually led to their going bankrupt. However, there are other options/alternatives that they could have followed instead of filing for bankruptcy out rightly.

If they had taken time to investigate other options, they would have found out that bankruptcy is not the best bet for them to follow.

Among the options they would have considered are;

Good personal financial management.

There is no substitute to being financially independent that to take control of your finances. You can only do this by learning the basics of financial management. Being at peace with terms like; time value of money, annuity and compounding interest can help you set up a plan that will help you come out of debt.

Debt consolidation

This involves borrowing from bigger financial power houses at a lower rate to settle your debt. You have to make sure that the new rate is smaller than the old rate for this action of yours to make any meaning financially.

Debt renegotiation

All you do here is to request your credit card company to review your terms of service with them. You can ask for lower rate and extended period to pay off your debt.

Simply do nothing

When you have no asset(s) that can be seized, and you are unemployed, this is the best option for you. Otherwise, take a serious look at the other options.

If however, they eventually decide to file for bankruptcy as a final resort, here are some measures that they should follow to select the best bankruptcy attorney or lawyer

Carry out research

Start by finding a list of registered bankruptcy professionals that you can possibly choose from. One way of doing this is to make use of lawyers and attorneys directory.

Visit the prospective bankruptcy professional

Seen evidence carries more weight than what you are told. Going there and observing things for your self will help you make a better decision. Am sure you will not accept a person whose office is disorganized to represent you on your bankruptcy matter.

Dig out some information by asking questions.

Ask the potent attorney or lawyer some intelligent questions that you must have drafted from home. And observe the way he answered them. If he is jittering and sweating, your sense of judgment should tell you what to do at this point

Gather information about the key principal partners of the law firm.

The principal partners of every law firm determine the success or failure of the company. You definitely have no business with people that are themselves failures. What out!

Get information about their relatives.

If they are good, their relatives should at least have a modest credit score.

Following the above steps should help you make the right choice in selecting the best bankruptcy lawyer or attorney for your situation.

To your debt free life!