Most will find themselves in bad financial situations at some point in their life. These are tough times and money is tight, jobs are insecure, and mortgages are exorbitant for most in that situation. The answer to avoiding personal bankruptcy is not always straightforward, and many seek debt advice before taking that step. The bottom line, however, is why take it at all, because once you’ve been bankrupt, things change substantially regarding your credibility.

Losing everything you own is just the beginning, as the bank and creditors will sell it. They do not care about sentimental ties or family inheritance, etc. It leaves and with it your whole life is wound up in the remains that remain and in your memories.

Why did that happen? You will ask yourself that question over and over again. You need to start over, but how? Where are you going to live? How do you live? Who wants to hire you?

Some kind relative or friend can offer you their garage or shed to live in and you move the rest of your life in it. It’s cold, hostile, and terribly inconvenient. The facilities are not connected, so you have to enter the house to use the bathroom, shower and even cook. That soon wears out the generosity of who has to live with it, and you.

It may be okay if it’s your parents or siblings, but even they are feeling the tension. Then there are the cost sharing. How do you compensate them for your share of the bills, like electricity?

In general, filing for personal bankruptcy is not a good idea and action should be taken early when financial stress looms. That means getting a job in another city, putting up a wall around you, and paying off all your long-distance debts. This is possible thanks to money transfer. Let companies know that you will pay for them with deeds, not words. They will regress if you make regular payments of your salary.

If you run a business and this happens to you, it is not so easy to just walk away, but you can either accept a partner, who will contribute financially, or liquidate it yourself. If you are a retail location, then sell the stock at a very low price. All you have to do is get back what you paid plus the rent. Again, tell creditors that you will pay them every hundred you owe and follow up.

That way, one can keep the home and assets out of their fingertips and nothing much will change. It will take time to get your life right, but at least you won’t have the stigma of bankruptcy hanging over you and you won’t depend on others for help.