Most will be in bad financial situations at some point in their lives. These are tough times and money is tight, jobs are insecure and mortgages are exorbitant for most in that situation. The answer to avoiding personal bankruptcy is not always obvious and many seek debt advice before taking that step. The bottom line, however, is why take it because once you’ve been bankrupt, things change substantially regarding your credibility.
The loss of everything one owns is only the beginning, as the bank and creditors will sell it. They do not care about sentimental attachments or family heritage, etc. He leaves and with him your whole life is wrapped in the remains that remain and your memories.
Why did that happen? You will ask yourself that question over and over again. You need to start over, but how? Where are you going to live? How do you live? Who wants to employ you?
Some kind relative or friend may offer you their garage or shed to live in and move the rest of your life into. He is cold, unfriendly and terribly inconvenient. The facilities are not connected, so you have to enter the house to use the bathroom, shower and even cook. That soon wears out the generosity of whoever has to live with it, and you.
It might be okay if it’s your father or brother, but even they feel the strain. Then there are the shared costs. How do you compensate them for their share of bills, like electricity?
In general, going into personal bankruptcy is not a good idea and action should be taken early when financial stress is brewing. That means getting a job in another city, putting a wall around you, and paying off all your long-distance debts. This is possible due to the transfer of money. Let companies know that you will pay them with deeds, not words. They will go backwards if you make regular payments of your salary.
If you have a business and this happens to you, it is not so easy to just walk away, but you can hire a partner, who will contribute financially, or liquidate it yourself. If it is a retail location, then sell the shares at a very low price. All you have to do is get back what you paid for it plus rent. Again, let creditors know you’re going to pay them every penny you owe and follow up.
That way one can keep the home and assets out of their hands and nothing much will change. It will take time to straighten out your life, but at least you won’t have the stigma of bankruptcy hanging over you and you won’t be dependent on others for help.
