• Menu
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Spews

spews

  • Home
  • About
  • Technology
  • Lifestyle
  • Traveling
  • Marketing
  • Money
  • Contact
  • Home
  • About
  • Technology
  • Lifestyle
  • Traveling
  • Marketing
  • Money
  • Contact

Debating Bankruptcy? There Are Other Options

May 23, 2018 //  by Geoff

If you are considering bankruptcy, it’s important to know there are other options. There is life after bankruptcy, and no matter how bad your situation, it could be worse. By taking action you are preventing things from getting worse, and while the road ahead may be rocky, at least you are on the right path!

Bankruptcy is usually considered a last resort for people that are struggling with debt and other financial obligations. People should not look at bankruptcy as a viable option if they have yet to explore other debt relief options. There is more than one way to handle a person’s debt responsibly. While it may seem like bankruptcy is a good option because it effectively wipes the person financial slate clean, it can lead to:

  • A life of unhappiness and stress
  • Higher interest rates
  • Little access to credit and other financial services

The person will need access to lines of credit in order to generate more wealth in the future. If a person is considering bankruptcy, they should take a look at the following alternatives as a way of dealing with their financial obligations, including the differences between bankruptcy and a consumer proposal. These are some of the best options when it comes to debt relief that do not include bankruptcy.

Debt Consolidation

Debt consolidation is a great alternative to bankruptcy because it does not permanently inhibit their ability to get more funding and credit later on in life. Debt consolidation involves taking all of a person’s debts and merging them into a single line of credit and a single bill. This is usually given to the person at a much lower interest rate than the one they would face if they kept trying to deal with their debts on their own. This helps the person better manage and plan for the future because calculating a monthly payment for one line of credit is much easier than having to make sense of lots of different debt payments.

The person won’t be as financially inhibited when trying to pay back their debt because the interest rates won’t be as high. If this is a viable option for the person, they should choose this method of dealing with their debt as opposed to filing for bankruptcy.

Debt Counselling

A person may also be interested in learning more about debt counselling as a way of avoiding having to file for bankruptcy. This will help the person better manage all of their financial obligations because they are sitting face to face with a professional that knows all the tricks to get a person’s debt as low as possible. While these services usually cost money, they will help the person save a lot of money down the line by helping them avoid paying certain taxes, interest payments, and other annoying financial burdens.

The debt counselor will be able to take a close unbiased look at the person’s current financial situation and what can be done to avoid bankruptcy. This is often a good first step for someone that’s struggling with debt collectors or their personal finances. The counselor will show the person all of their options, so they can make an informed decision later on. The person can ask all kinds of questions during the process to make sure they know all the repercussions involved. There are lots of alternatives to filing for bankruptcy and this gives the person a chance to consider all of their options.

Consumer Proposal

Bankruptcy and a consumer proposal are often confused for one another. A consumer proposal is auseful option for people that are struggling with lots of debt and other financial obligations. This effectively means the debtor and a lawyer will address the concerns of the debt collectors and tell them what they can pay and over how long. This is a way for the person to negotiate their debt down to a reasonable amount. Some creditors will not get paid if the person ends up filing for bankruptcy, so they might decide to ask for a lower amount via a consumer proposal as a way of recouping some of their lost funds. While this is not always an option for some people and some debt collectors may refuse to play ball if they believe they have a good chance of getting all their money back. But it can be a great way of getting out of debt or lessening these burdens if a person is stuck in an unpleasant financial situation.

If a person is debating bankruptcy, they should strongly consider talking to a debt counselor. This person will lay out the pros and cons involved with bankruptcy and a consumer proposal. Those looking for more information can visit Chande & Company.

Category: Money

Previous Post: « Boutique Fitness Studios Offer More Than Privacy
Next Post: Four Tips For Managing Your Money While You’re On Vacation »

Primary Sidebar

Hey there, I'm Geoff. In today's society it is more important than ever to live a safe lifestyle. Keep your home safe, stay safe while traveling and in my case, keeping my blog safe! There is lots of spam and scam out there - so let's try to lead a healthy and fun lifestyle while keeping ourselves and our families safe!

Follow Us Online

  • Facebook
  • Instagram
  • Twitter

Recent Post

Strapless Bra Dilemma: What to Do When You Don’t Have One

May 2, 2023 By //  by Geoff

When it comes to wearing certain outfits, a …

Personal Growth: 5 Benefits of Investing in Professional Development as an Entrepreneur

May 2, 2023 By //  by Geoff

Whether you’re a new entrepreneur working from …

3 Things To Do Before You Take Your Wedding Photos Or Videos

April 13, 2023 By //  by Geoff

If you have a wedding coming up, one thing that …

Planning the Perfect Bulgarian Tour: Guide for First-Time Visitors

March 28, 2023 By //  by Geoff

Are you planning your first trip to Bulgaria and …

An Introductory Guide to Solar Installation

March 28, 2023 By //  by Geoff

Installing a solar panel can be a great …

Follow Us On Facebook

Spews

Footer

About US

Hey there, I'm Geoff. In today's society it is more important than ever to live a safe lifestyle. Keep your home safe, stay safe while traveling and in my case, keeping my blog safe! There is lots of spam and scam out there - so let's try to lead a healthy and fun lifestyle while keeping ourselves and our families safe! Read More…

Follow Us On Facebook

Spews

Copyright © 2023 Spews · All Rights Reserved · Powered by Mai Theme