Nike shoes sale. How To Thwart Bankruptcy: Bankruptcy is one glaring outcome of the global recession and a condition that has affected millions around the world. Filing for bankruptcy may seem like the easy way out of many debt-ridden situations. However, unknown to many, this is definitely not the best solution. Declaring yourself bankrupt will adversely affect your credit scores, and in some cases, your property may also be confiscated. What's more, you cannot be sure that all your debts will be waived. So consider alternative options—ones that will thwart bankruptcy.
Improving your credit condition so that you can repay at least some portion of your debt is the most feasible solution. For this, you can sell some of your assets or cut down on your household expenses. These are drastic measures and will entail tweaking your standard of living, like doing away with satellite television or eating out less. But they are nonetheless effective and will bring about some improvement in your bank balance.
If things look really downcast and you can hardly keep up even with the minimum monthly payments, then consider approaching a debt management company. They will, in turn, get in touch with your creditors or collection agency to forge a debt consolidation or debt settlement scheme. In these choppy economic times, most creditors prefer reducing the debt amount by as much as 40-60% rather than filing a bankruptcy suit. This ensures that they recover some part of their loan. You can also reduce the amount of minimum monthly payments if the interest rates are slashed. This is the goal of a debt consolidation program. Most such programs also waive the late fees and over-the-limit charges so that your burden is lessened.
If you can figure out the best debt repayment arrangement for your situation, you can yourself get in touch with your creditors to negotiate. Keep in mind, declaring bankruptcy should only be your last resort.