To announce someone as ‘bankrupt’ is not as easy as you think. Why? There are a lot of procedures that need to be taken into account by the creditors and the financial institution.
Additionally, announcing bankruptcy is the last resort of the financial institution. All processes of convalescence are done to earn the loan they had given to the debtors.
It might seem impossible to escape from bankruptcy. You might feel hopeless and stuck, not knowing what to do next or how to solve this problem. However, in hindsight, there are ways to avoid bankruptcy.
Here are some ways that can hopefully help you avoid bankruptcy:
- Sell your assets
- Selling your assets can help you clear the debt in large amounts.
- For instance, a high-value vehicle can be your funding to pay a portion of your debt.
- Malaysians, for example, are encouraged to buy price-worthy jewellery like gold.
- The price of gold decreased this year due to inflation.
- Buying or having gold jewellery is a great investment plan for the long run.
- Spend your money wisely
- Paying your purchases by credit could be dangerous.
- You aren’t always aware of your money flow and balance.
- The accumulated debts from your credit card can be overwhelming.
- Hence, try subscribing to a direct debit or membership you can remove to free-up money.
- This might help you put some money into your monthly repayments.
- It’s not wrong to ask your family or friends for help
- The drastic situation calls for drastic measures— ask anyone you’re close with for a helping hand.
- But don’t forget to pay them back once your financial situation is on track.
- Or not, you’ll add more burden to your shoulders and long years’ worth of sarcastic remarks from them.
- Tell your creditor about your situation
- Creditors might assume you don’t want to pay your debt when you keep mum.
- Try to muster the courage to ask your creditor for a breather by negotiating with them.
- At the end of the day, they are humans too.
- Through negotiation, creditors can give you the longest by 30 days to settle your debts.
- Don’t ignore your creditors
- Don’t ignore your creditors’ phone calls or emails.
- You have to be update by the timescale to repay your debts.
- Usually, you will be give around 18 to 21 days to reply to them.
- During this time, you could agree with your creditor to avoid being bankrupt.
You can avoid bankruptcy by practising these guidelines.
Also, you can know more about bankruptcy and the procedures in Malaysia by visiting the Malaysian Department of Insolvency website for further details.
Not only that, but you can also visit AKPK‘s website for further assistance if you need help managing your financial problems.
Sources: PayPlan, Malaysian Department of Insolvency, MyKMU, AKPK