ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Avoid Bankruptcy

Updated on February 20, 2013

No matter what your current financial situation you are currently in, it is important for everyone to understand how to avoid bankruptcy and make financially smart decisions to keep your good credit and maintain a sense of financial stability for the long term. Bankruptcy can have long term and harmful effects on your financial history and credit reports. Filing bankruptcy is not a path that you have to take; there are many alternatives and steps you can take before you find yourself faced with bankruptcy notices or foreclosures.

The first sign that you may be heading towards the road of bankruptcy is when you begin to lose sight of your regular payments and find yourself behind in more than one payment and have more debt to pay than income to support this debt. These are the signs of not only bad credit but out of control spending that can lead you to bankruptcy if you do not stop this cycle before it is too late. The only way to really see what type of financial situation you are in is to take a blank sheet of paper and write your monthly debts and expenses on one side of the paper and your income and assets on the other side of the paper. This way you can see just how much trouble you are in.

From this assessment you should be able to see some of the mistakes you are making with your money and make the appropriate changes in order to get your finances back on track. This can sometimes be hard to honestly take a look at your spending and not only see the mistakes but take the action to correct them. Most often the problem is that you are spending your money paying off the minimum monthly payments and using your excess money to only purchase more items that you cannot afford. This can become not only a vicious cycle but a habit that can be hard to break.

If you find that you do see mistakes in your finances but are not sure how to go about making the changes before you have creditors contacting you and bankruptcy notices coming your way, there are many financial professionals who can help you stop this spiral if you have caught the problem early enough. Just as with any situation once it reaches a certain point there is no way to turn it around. You want to take care of your credit problems before you are months of payments behind and before you lose your credit and even your home. These are the events that initiate the bankruptcy process as many people lose hope and faith in themselves and this type of negative thinking only harms their situation that much further.

Understanding that bankruptcy is something you can avoid is the news everyone wants to hear when you are suffering from financial problems that you think cannot be avoided. Visit your trusted financial advisor or lender today for assistance to get your bills and debt back into order.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)