The short answer is, you can't. No, I'm just kidding, but if your debts are so high that your only possible way to manage your finances is by eliminating your old debt, then maybe you should file bankruptcy.

Bankruptcy is not the enemy, it is a second chance to start things over again fresh. For those who are seriously considering filing bankruptcy there are lots of services including online bankruptcy preparation that are aimed at helping everyday people file bankruptcy quickly and cheaply including. Look at our recommendations at the conclusion of this article.

How To Avoid Bankruptcy: If you are at the point where your debt is high but manageable then there is still hope. Bankruptcy filing normally comes about as a result of poor investments, unexpected emergency situations, or borrowing more money than could reasonably be paid back. Barring making any risky investments or having any emergencies, you should be able to help yourself avoid bankruptcy by employing the steps below.

1) Make A Budget--Yes, yes you have heard this a thousand times, but have you done it. A monthly budget sounds like a restriction but it really is one of the best ways to prevent yourself from over spending and landing in bankruptcy. One of the greatest things about having a budget is you get to set and control it. This means that if you want spend $20 a month on food, live out of your parents basement and spend $1,000 on partying each month, you can! Just make sure that in your budget your income or the amount you receive on a regular basis always exceeds the amount of money you spend, even if it is only by $50.

2) Save Money Regularly---Yes you have heard this one to, but the truth is that if you have a decent amount of savings, then you can prepare for unexpected emergency situations that can lead to bankruptcy. So each month automatically put a bit of money away and since you already have a budget set up that meets your needs, whenever you get extra money put that in savings too.

3) Start Paying Off Past Due Debts---Most bankruptcies occur as an accumulation of unpaid debts, because of this it makes sense to get rid of your current and past due debts before they become overwhelming.

4) Don't Borrow Money That You Are Not Sure You Can Pay Off--Just because you have a $5,000 credit limit does not mean that you have to spend all $5,000. In fact despite the air miles you can accrue, you should try to limit the use of your credit card to emergency situations only, that way you are not tempted to spend more than you can afford to payback. A great way to avoid using your credit card is to leave it in a safe place at home, so that when you are at the bar and run out of cash you do not use it to pay for everyone's drinks.

These steps seem easy and logical but how do you think many people ended filing bankruptcy?


Our Top Online Bankruptcy Preparer Recommendations:

• USA Bankruptcy Associates 
• Miller Bankruptcy
• Bridgeport American