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Considering the fact that money is hard to come by in recent times and with the rate of unemployment on the increase, a lot of people are in a situation where they feel filing for bankruptcy is imminent. However, there are still chances that you may be able to sustain yourself and your family without filing for it. Let us see a few simple steps that can help you stay away from bankruptcy.

First of all, make a list of all assets you possess. Anything that you think you can live without and can fetch a good price. It is okay to have even furniture, electronic items and jewelry on your list. Not only will these pieces fetch you a good price, but these are also products that you can buy again once your financial condition improves. When on the verge of bankruptcy, don`t think about the inconvenience you might face without these gadgets. Just focus on getting yourself out of filing for bankruptcy which can take years to get off your credit history.

One more important thing is to contact your creditors and let them know about your financial situation. Negotiate with them about alternate payment methods and terms. You will be surprised at the response you receive. Most of them will be willing to negotiate these terms with you since it means they will be getting their money, albeit a little late which is better than not getting money at all which is what will happen when you opt for bankruptcy. Don`t hesitate wondering about their response. Make the first move and you will not regret it.

Don`t think twice about opting for credit counseling agencies which have been specifically set up for consumers who find it tough to negotiate terms with their lenders. The professional counseling agents will convey your situation to your creditors and work out terms that will be feasible to both parties. In fact, this has proven to be so effective that a new federal rule states that credit counseling is mandatory before filing for bankruptcy.

Finally, don`t forget your close ones. Your family members and friends will be more than willing to pitch in to save you from bankruptcy. Just ensure you don`t take advantage of their generosity. However, before you approach them for help, have a clear idea of the amount of money you need to bail you out of the situation and when you intend to repay them.

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