How to avoid and deal with it.

What happens when you file bankruptcy? While the details depend largely on the types of bankruptcy (chapter 7 or chapter 13), the results aren’t pretty. For example, those filing for bankruptcy may:

Lose their property

Tank their credit score

Struggle to secure future employment

In order to avoid these consequences, we’ve put together a few ways you can stay on your feet during a bankruptcy scare.

Sell assets

When debt is overwhelming and the threat of bankruptcy looms on the horizon, act quickly and consider selling some of your valuable possessions to help pay off your debts. For example, take stock of items like jewelry, furniture, collectibles, or anything else that can fetch a good price.

Cut out expenses

Pay careful attention to the money you’re spending each month and make temporary adjustments so that every penny counts. For example, cook at home instead of ordering takeout, cancel streaming services or other monthly subscriptions, utilize coupons, and take free public transit rather than spending money on gas.

Talk to your creditors

In some cases, creditors may be willing to renegotiate payment plans in order to avoid a situation where you default on your debts. Don’t be afraid to ask about instituting a more realistic schedule for debt payment.

Ask for help

Ask your friends and family for help! By approaching your loved ones with humility and honesty, you may be able to secure an interest-free loan to pay off debts immediately and avoid further consequences.

Seek professional assistance

Thanks to the internet, anyone at risk of going bankrupt has quick access to professionals who can steer them in the right direction. For example, you might seek help from an Online Business Coach or an Online Legal Advisor. 

While a Business Coach will be able to offer advice about why your business is going bankrupt and how to turn your finances around, a Legal Advisor will be able to advise you on matters regarding bankruptcy law.

With individualized and affordable online sessions, you can call and meet face-to-face with one of these professionals to receive Expert guidance.

When you’re dealing with the threat of bankruptcy, one of the worst things you can do is put off finding a solution. Instead, act immediately and efficiently to increase your chances of beating bankruptcy and coming out on top.

For starters, talk to an Online Business Coach or an Online Legal Advisor to schedule a consultation. One or both of these professionals will be able to steer you in the right direction—far away from bankruptcy! Browse through our list of Online Business Coaches and Online Legal Advisors now and book a session.