BANKRUPTCY

(Problem and solution)

Bankruptcy I chose this topic since I know a lot of people or a relative of mine
experience this. Perhaps the most well-known consequence of bankruptcy is the loss of
property, all assets are liquidated by the bankruptcy trustee, in addition the proceeds from
the business assets are paid out to the business's creditors. As previously noted, both types
of bankruptcy proceedings can require you to give up possessions for sale in order to repay
creditors. Under certain circumstances, bankruptcy can mean losing real estate, vehicles,
jewelry, antique furnishings and other types of possessions.

Your bankruptcy can also affect others financially. For example, if your parents co-
signed an auto loan for you, they could still be held responsible for at least some of that
debt if you file for bankruptcy

In order to avoid bankruptcy first, try to minimize control spending over your
finances is to figure out how much you spend each month and where it's going. Putting
together a simple budget, boring as that may sound, is the quickest and easiest way to go
about it. At this point, this second advice is really helpful since my relatives prioritize being a
" make debt repayments a priority" Third Sell assets you have like If you have anything you
can sell to put towards your debts to clear a large amount, this is always a good idea. A high-
value vehicle, for example, is a good selling option as you can use the funds to offer a large
amount to pay off a portion of your debt. Fourth is to ask friends or family for help because
instead of take on more credit to repay debts, but asking for help from family and friends
can be a good way of clearing a large portion of debts. You can ask to set up an arrangement
to pay them back steadily over time. Lastly Get a Second Job, these days, it’s not uncommon
to hear of someone working a second (or third) job. Having an extra source of income can
help you avoid bankruptcy. Just be sure you’re putting the extra income toward paying off
your debts. Getting a second job will mean sacrificing time with family and friends, and we
know that’s hard. But remember—this situation is temporary. Say it again: This situation is
temporary. You won’t have to live.