How to Avoid Bankruptcy

Tips how to avoid bankruptcy and public records

In many cases, filing bankruptcy is the best solution. In other cases, great care should be used considered how to avoid bankruptcy altogether. An analysis available advantages of all options should compare all options before reaching a decision. For example, even though avoiding a filing is possible, the cost of restructuring debts and defending claims may become overwhelming and force later filings after assets are unnecessarily depleted.


When catching a financial crisis in the early stagers of development, many popular commercial alternatives offer good protection and sound results. In the most basic sense, financial management of risk and a realistic budget (that is actually followed) go far to prevent insolvency. Nevertheless, even with the best management techniques, unexpected emergencies often require a more active approach to reduce principal rapidly, lower interest, and prevent additional late charges. The most popular options today are:

  • credit counseling programs that offer reduced credit card payments in exchange for a waiver of future charge privileges.
  • home equity loans to extend payments and reduce interest of all types of debts.
  • traditional debt consolidation loans to combine all debts and payments under a single note.
  • Retaining an attorney to negotiate agreed reduction and settlement agreements.
  • Slashing expenses and/or finding additional part-time employment.

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