Tuesday, January 4, 2011

Guest Post: How To Avoid Bankruptcy

In today’s sputtering economy an unprecedented amount of people are struggling to keep up with their bills. Unfortunately, many are in insurmountable debt and can’t avoid filing chapter 7 or chapter 13. However, with reliable and current bankruptcy information, it’s possible to get a handle on your debt and avert the risk of having to file chapter 7 or chapter 13. It’s also imperative that the bankruptcy information you rely on can be applied to your situation. What follows is some general information about how to avoid chapter 7 and chapter 13. Please note that this general information is not tailored to any individual’s particular situation, and if you need specific personal bankruptcy information or business bankruptcy information, you're best advised to seek the advice of a legal or financial professional.

More Bankruptcy Information
When it comes to bankruptcy information about chapter 7, the most important information is that chapter 7 bankruptcy entails the court-supervised liquidation of your assets. Once the court has liquidated your assets in a chapter 7 bankruptcy, it oversees the chapter 7 repayment of your creditors. A chapter 7 applies to debtors whose debts are largely unsecured and whose income is below that of the state median. If you’re in the situation that your unsecured debts have become unmanageable, a way of avoiding a chapter 7 could be applying for debt settlement. This alternative to chapter 7 bankruptcy means that you negotiate a debt reduction with your debtors and agree to repay what remains of your debt in a monthly repayment plan. As an alternative to chapter 7, this process usually works well for those with credit card debt and unpaid medical bills.

Bankruptcy Types
General bankruptcy information about chapter 13 informs us that chapter 13 bankruptcy is a legal procedure that allows a debtor who has sufficient disposable income each month, to restructure his debts and assets in order to repay his creditors over time. Chapter 13 applies to debtors with an income that is above the state median and who possess a valuable asset like a home or a car. You can get bankruptcy information about how to file a chapter 13 online at the US Government’s website, but you are best advised to consult with a chapter 13 bankruptcy lawyer about this process.

However, there are a number of debt relief alternatives to a chapter 13 bankruptcy. Possible alternatives to a chapter 13 bankruptcy could be loan consolidation or loan restructuring. No matter whether you consult with a credit counseling agency or a legal expert for bankruptcy information, always make sure you have investigated your alternatives before filing chapter 13 bankruptcy.

About the Author
The writer of this article has made his mark by writing on legal issues especially on Filing Bankruptcy procedures in different states. The author regularly writes on bankruptcy related issues like Ohio bankruptcy, Filing Bankruptcy In Ohio, chapter 13 bankruptcy and chapter 7 bankruptcy, etc.


  1. Whenever a person is in a financial deficit, he or she normally looks for an alternative to get him or her outside of this financial crisis. If he or she does not have a sound financial back up, he or she will gaze for a loan. This will in most cases be termed as a personal loan.

  2. If you are considering filing bankruptcy, or are in the process of filing for bankruptcy, we suggest you read about your options first and make a more educated decision. You will hear a lot of different things from a lot of different people (depending upon what they're selling you). Rest assured, you do have multiple options to choose from when you bills become too much.

  3. Yes there so many option for you to avoid bankruptcy but there is no denying the fact that there is a strong stigma associated with bankruptcy. People facing bankruptcy often feel embarrassed, ashamed and as if they have failed. But if you seek for the financial advice it will help you alot.

  4. Hi, thanks for sharing this post. If you want to avoid bankruptcy, you have to find other way to solve your financial way if you can find other way.

  5. For me its up for the person whether they file bankruptcy or to avoid it, but bankruptcy is the best way to handle your financial problem.

  6. I would agree in the comment above, when people are having trouble with their debt or other financial issue, they decided to find a solution, bankruptcy could help you out your problem don't avoid it.

  7. The truth is, once a person experience bankruptcy at first there is a feeling of shamed and denial to the fact that the business is already in bankrupt. But the best way to cope with that is seeking help and ask for some advices with the consultants.