What do you do if you've exhausted your credit and you're really in trouble? One way to avoid bankruptcy is to quietly declare what we call an "Informal 11." Over the years, we've had two PRO members who used this strategy successfully, enlisting the aid of their creditors to circumvent bankruptcy. What do you do? Swallow your pride and meet with each of your creditors, one on one. Tell them quite honestly that you're in trouble. Tell them that you do want to pay them. Ask them to reduce your debt or present them with a payment schedule that you can meet, and to honor new orders on a COD basis. Remind them that if you do go into bankruptcy, they will get very little. Our PRO members were relieved and pleased to find their creditors willing to "get a haircut" (take something off the top). The vendors acknowledged that getting something is better than getting nothing. They were willing to work something out as an investment against the future. Both our stories had a happy ending. After about two years, our members were able to work their way out of debt and pay back their creditors. Yes, this really can be done. The key is to be completely honest with your creditors and your bank. Remember, your credibility is all you have. And don't procrastinate, no matter how hard it is. Get everyone on board as early as possible. No one likes surprises, especially bankers and creditors. But they don't want to see their customers fail, either, especially with outstanding debt.