January 25, 2008, Newsletter Issue #99: When to File Bankruptcy The Last Resort

Tip of the Week

If you choose to file bankruptcy in your personal finances or your business, you should be sure that it is the best solution available. Many people and businesses in debt trouble file bankruptcy unnecessarily because they did not know of any other options they had. Bankruptcy is a viable option many times, but only as a last resort. Here are a few ways to tell when to file bankruptcy.

If you have accumulated debts that are beyond what you can afford to pay, this is the first sign that bankruptcy may be an option. However, you should first examine options that do not include this type of filing. Refinances, consolidations, and other services can be advised by credit and debt counselors and you should consult with one before you file bankruptcy notices. If no alternatives are plausible, then bankruptcy may be the only option.

If your business has too much overhead and is not generating the capitol to handle its bills, bankruptcy may be the only option. Many people believe that bankruptcy means a business goes under, but this is not the case. Bankruptcy is a shield that can protect a company and buy it some time to get back on its feet. Yes, your credit will suffer, but this is often a far better alternative than anything else.

For people wondering if they should file bankruptcy, be sure that this is the right option. Speak with a professional financial analyst or bankruptcy attorney to have them advise you on your best course of action. You can easily find this help and you will find that it may save you from making a major mistake.

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