This bankruptcy advice is for those who know they have fallen into serious debt, but far more for those who don't believe it will ever happen to them. No matter how careful you are, there are circumstances that can plunge you into serious debt overnight. No one can foresee major health problems, or the loss of a job. The more that you believe it won't happen to you, the less cautious you prove yourself to be, and the more danger you are in. Of course, it may never happen to you, then on the other hand, it may. The first step to avoid personal bankruptcy is to believe that it can happen to you. That will put you in a position of strength where it is far less likely to happen.

If you already have mountains of debt accumulated, it might be too late for good financial advice. Before you file bankruptcy, first try other measures such as slashing your budget to the minimum and making a written arrangement to pay all you owe by certain dates. Also you might try going to a credit counselor who will consolidate your debt and pay it on your behalf. Another option is to call your creditors and see if they will agree to some kind of debt elimination where you can offer to pay only a percentage of what is owed. If you have exhausted all those measures and any others that may work, and you were still in trouble, then the only thing left for you to do is to file bankruptcy. This is the fairest way for you and all of your creditors.

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