Personal insolvency results when a private individual can no longer pay what he or she owes to one or more crediting agencies. It's an increasingly common dilemma that more and more people find themselves in. If you, a friend or family member find yourself facing insolvency, you're not alone. In fact, despite the slow recovery of the economy over the past year, experts predict a 25% increase in the number of insolvencies declared this year. That adds up to 40,000 people who will need to seek insolvency solutions for debt that's out of control. If you are among them, what should you do? Following these 5 solutions to insolvency is a step in the right direction.
Admit the Problem.
Face your reality. It's time to admit the problem may be out of your control. Reality can be difficult to face. Society places a stigma on out of control debt, but in actuality, our society faces more debt as a whole than ever before. We all have to own up to debt as a culture. Many of us are in similar positions, from the banks to the government to the guy who just lost his job overseas. The first step begins with admitting the problem may take outside solutions.
Prioritize Your Debts.
Begin your debt concentration with your secured creditors. Make sure to conserve enough cash to meet basic living expenses. Pay unsecured creditors at least a little bit. This is a better approach than concentrating on the few and stiffing the rest.
Consider Your Assets.
Cars, boats, equipment and real estate may be worth more than you think. If debt resulted from excessive purchases, consider listing the merchandise on Ebay. For anything you sell, put the cash towards your biggest debt. You likely stand to make more than you think.
Renegotiate and Reorganize.
Discuss the options with your creditors. You can likely negotiate some kind of deal. You might be able to arrange stretched out payments, lower interest rates or even have at least part of the debt written off. Work closely with a non-profit credit management agency for a lower interest rate in a program that concentrates on minimizing your debt.
Discuss Possible Solutions With an Insolvency Lawyer.
There are solutions available. Find out what they are and which can best heal your situation. A insolvency lawyer can recommend the best plan for a fresh start. Remember the future always lies in front of you. Work today to make tomorrow a new beginning by getting in touch with a Long Beach bankruptcy attorney.