Q: As a result of my divorce, I'm left with more debt than I can handle. Is there an alternative to bankruptcy?Written by Susan Oriely
One of often-unintended consequences of divorce is burdensome debt that was formerly handled by two, now to be handled by one. Creditors hold both spouses liable for debt incurred during marriage. Any agreement between spouses regarding who is responsible to pay debt need not be recognized by creditor.To avoid bankruptcy, one must become acquainted with bankruptcy law. You must determine you income/expenses and your assets/liabilities. If you have ability to fund settlements with creditors, you should avoid bankruptcy. Other than just paying you debts in full, one option to avoid bankruptcy is to compare debt consolidation with debt negotiation. Debt consolidation is a payment plan in favor of your creditors to pay debts in full over time with interest. Debt negotiation, however, provides for discounted cash settlements, which are customized to you ability to fund.
| | Top Strategies for Managing Debt during a Financial CrisisWritten by Susan Oriely
To survive times of financial crisis, it is crucial to keep in mind two most important imperatives. First, don't panic; second, set your priorities.A calm thoughtful approach to your family's evaluating necessities becomes your priority in today's tough economic times. Look at your monthly income (or average monthly income) and subtract from it you fixed costs of living. Fixed costs are housing, utilities, food, auto (or other mode of transportation), clothing (necessities), insurance, child care/school, etc. DO NOT INCLUDE CREDIT CARDS. Recreation and luxuries are not necessities. Are you making enough to cover fixed costs? Are you living beyond your means?
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