As readers of this blog know, we are big proponents of considering all of your bankruptcy alternatives before making a decision. What's the best way to do that? We recommend a three step plan.
First, make an inventory of where you are at. Who do you owe money to? What do you own? How much money is available from your personal budget each month to repay your debts?
Second, with this information, make a list of your bankruptcy alternatives. Can you deal with your debts on your own? If you can cut expenses or increase your income, that may be your best alternative. Can you get a debt consolidation loan to lower the interest you pay and repay your debts? Or do you need to consider a more formal solution, such as a Chapter 13 Wage Earner Plan or a consumer proposal? With these alternatives in mind, research your options. For example, residents of Kitchener, Ontario can read about bankruptcy alternatives in Kitchener; there are many similar web sites for residents of other places in North America. The bankruptcy America blog is a great resource.
Third, once you have researched your options, make a plan. Decide on which bankruptcy alternative is right for you. Then, do it. A plan is of no value if you don’t get started now with your plan. You have alternatives, but they can only help you avoid bankruptcy if you research, plan, and act.
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