Unplanned loans, fall in income etc contribute to the problem of payment of debts.
There are many options left before a person files bankruptcy .A few alternatives to filing bankruptcy are as follows:-
• Selling out old car
• Renting out rooms in our guest house and earn some money for payment of dues
• Selling share equities which we own
• Finding work which can be done after our office hours are over and get paid for it.
• Surrendering insurance policies to get cash for payment of dues
• Selling out our home and staying in a rented place
• Take loan from our family friend or relative on a condition of payment on a future date
• Cash out refinance is also a good option, here the homeowner mortgages his house at a higher value than previous mortgage and uses the extra money to pay out his debt
Finally, the last option which remains is selling the jewelry of the house