| Filing for bankruptcy can be a difficult and complex | | | | to find a way of paying debts other than filing for |
| legal process. When someone files for bankruptcy, | | | | bankruptcy. Even before considering bankruptcy you |
| they have to apply for a court judgment to say that | | | | will have to find out the true state of your finances |
| they can no longer cover their financial commitments. | | | | and find out if there are any ways you can pay for |
| The process can be costly and after all of this, there | | | | you debts. You must do this, because the court will |
| is no guarantee that the court will actually grant | | | | be asking the same questions. |
| bankruptcy if they consider you are still capable of | | | | For business owners that are struggling with their |
| paying for your bills. | | | | business, it's highly recommended to get advice to |
| Even if bankruptcy is granted there are still some | | | | avoid filing for bankruptcy. This may mean you have |
| costs that remain such as child support, student | | | | to put a stop to your debts going out of control and |
| loans, alimony and taxes secured by liens. Bankruptcy | | | | find a way to close the business in the most cost |
| can also stay on your credit history for up to 10 | | | | effective ways. |
| years. During this time, it will be extremely difficult to | | | | Think of your alternatives: |
| get a new mortgage, loan or even a credit card. So | | | | Cut your costs to a minimum. |
| for those that consider bankruptcy as a way out of | | | | Start a strict budget and stick to it. |
| paying for debt, it may also be a 10 year sentence | | | | Explore all other sources of income such as extra |
| to very bad credit. | | | | work, a better job, getting help from other people |
| There are alternatives to bankruptcy. You may find | | | | like family members or a debt consolidation loan. |
| that you can save a lot of costs by coming to | | | | Remember that filing for bankruptcy may mean you |
| private arrangements with your lenders or suppliers | | | | have to find another way to budget and repay your |
| you owe. This will give you extra time to get your | | | | creditors anyway, so the earlier you can do this by |
| finances back on track. | | | | yourself the better. Also, make sure that whatever |
| For individuals who are struggling month to month | | | | you do doesn't turn out to be a quick fix that leaves |
| with their bills, or suddenly find themselves in debt | | | | you in more trouble in the future. |
| because they have lost their job, it will be far better | | | | |