Doesn't Everyone Need to Know More About Bankruptcy? Joking Yes But Here's Help for Those Who Need It!

Certainly this article is about bankruptcy but I want to tell you up front that you may come across the word 'budgie'. Don't worry, the article is not about birds; I do like budgies though. I use the word 'budgie' or 'budgies' sometimes in place of budgets because a budget is known to get budged and also as it makes me laugh!

Okay, so bankruptcy is a procedure which allows a debtor (someone that owes money to someone else) to get a court ordered exemption from his debts. In some cases bankruptcy can act as a valuable method to get rid of debts. But everybody who faces any financial difficulty should not file for bankruptcy.

Should I file bankruptcy?

Tough question really. You'll need to discuss this one with a bankruptcy attorney or a credit counselor as they can determine the benefits and costs for your situation. The kind and amount of debt you have can make a big difference and really you make the final decision in the matter anyway. Know the consequences fully before you make your final decision. Many bankruptcy filings could have been prevented with a strict budgie.

What are the substitutes to bankruptcy?

There are numerous choices available rather than filing bankruptcy. What is suitable to you depends largely upon your financial situation. Again, go for financial counseling prior to filing a bankruptcy case to make sure you know the full ramification of what your about to do.

Here are some possible options available:

Management Of Your Finances

You can hire a financial manager for handling your debts, and to pay you an "allowance" in the mean time till you get things turned around. This option is known to be helpful if your problems are related to bad spending habits. North Americans are taught that it's okay to buy items we want with other peoples money so this fuels the urge to spend more than we make. If you don't want something so rigid, simply having a financial counselor help you create a budget can go along way. Don't forget though a budget will only work for disciplined folks that don't have problems buying bright shiny objects.

"Working Out" Your Debts

Financial counselors can be really expensive so choose one wisely if youre going this route. Look for a non-profit counselor in your area. Creditors know it can be hard to collect money whether you declare bankruptcy or not. Know that collection agencies take large commissions for collecting and litigation can also be expensive, time consuming and forcing debtors to file for the big 'B' doesn't guarantee recovery of debt anyway.

Refinancing

Do you own a house that you've been paying off for a while? If you have some equity in it there's a good chance you can refinance it and get a really low interest rate and pay off your debts faster. Single low payment companies should be avoided as they often have high interest rates. Again I say the budgie may be best. Loan packages are probly the safest through your bank or credit union.

Credit Repair Offers Are Often Scams

You may have seen ads offering to repair bad credit or promising to remove bankruptcy from your credit history. Many of these offers are fraudulent and proceed with caution. Your credit rating can be boosted but I'll save that for another time.

So to conclude: don't tempt yourself with bright shiny objects and do whatever you have to so you don't spend more each month than what you earn. A well cared for budgie will go along way. I trust this to be of some assistance or at least gave you a laugh anyway. Anyhow, don't sweat it; there are more important things in life than money or the lack of it. Have a great day!