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Bankruptcy an option for individuals or organizations who don't have the financial means to repay the money they owe their creditors. In such cases, the person or organization can file for bankruptcy in the courts. Though bankruptcy is mostly filed by the person or organization, in some cases, it can be filed by the creditors themselves, to help them recover a portion of their losses.

Though bankruptcy may seem like the easiest solution to go for when facing a severe financial crisis, it should be avoided at all costs and should be the last resort.

Bankruptcy is not a wise solution since it can be followed by harmful consequences that can damage your life. Let$%:s take a look at some of the ways to avoid bankruptcy.

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Make sure you stay employed. People who are out of work are more prone to getting into and carrying debts that they're unable to repay. This debt can quickly accumulate and lead to bankruptcy.

If you are already married, try your best to keep it that way. Your chances of declaring bankruptcy increase when you go through a divorce, since either you or your partner may suffer financially.

Limit the number of credit cards you have. The greater the number of cards you have, the more likely you are to use them. The greater the usage, the greater the debt. The greater the debt, the greater are the chances of you going bankrupt. It$%:s that simple.

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Make sure your income is always higher than what you borrow or accumulate in debts. This will ensure that you are in a position to repay what you borrow. Sticking to this rule will go a long way in helping you avoid bankruptcy. No matter how urgent, don$%:t buy something if you do not have the money to pay for it. Also, don't buy items just because they are cheap or on sale.

These are some of the rules you can follow to keep yourself from going bankrupt. Planning and controlling your spending is the key. Once you have that mastered, keeping yourself out of bankruptcy will not be a problem.