Bankruptcy isn’t a get out of financial jail free card. Fortunately, there are ways to save yourself from filing bankruptcy in the first place.
When you’re suffering from an immense and suffocating debt, filing for bankruptcy may seem like a reasonable solution. And it may well be your best option! While being in debt may be so overwhelming you think that you have no other choice, bankruptcy can have a significant impact on your credit score and financial future. There are many ways to save yourself from filing for bankruptcy, even if it does take a little bit longer to get relief.
With that in mind, below are a few ways you can begin to get yourself out of debt and avoid filing for bankruptcy in the first place. If after reading this advice you still think filing for bankruptcy is the best solution, contact bankruptcy attorneys to make sure you get it right.
- Talk to your creditors. Chances are, your creditors would rather have you pay them some money today than no money never. By expressing your willingness to pay the debt, they might be able to lower your monthly payments, decrease interest rates, or even write off a portion of the debt. Many credit card companies offer hardship programs for customers who are having financial difficulties.
- Consider credit counseling. It may be beneficial to seek the help of an experienced professional. If you don’t have luck with the creditors on your own, a credit counselor may be able to help get your payment and interest rate reduced. If you do end up filing for bankruptcy, you will be required to go to credit counseling anyways, so it’s worth considering.
- Sell some assets. By selling whatever you can, you’ll be able to use the money to help pay off your debts. While it may not be a lot of money, it could at least buy you more time. Some people choose to consult an appraiser so they are able to determine the value of the property they intend on selling. It’s important to take action as soon as you realize you are falling behind on payments.
- Seek assistance from family or friends. Many people struggle with asking to borrow money from their friends and family. But if you’re close to filing for bankruptcy, you’re going to have to swallow your pride and ask for help. Get your finances in order and figure out how much you’ll need to borrow in order to avoid bankruptcy.
Unfortunately, more than 1.5 million people file for bankruptcy every year, according to U.S. bankruptcy court statistics. To avoid joining their ranks, you’ll need to make real sacrifices. Despite what some people think, personal bankruptcy isn’t a get out of financial jail for free card. Even the best bankruptcy attorneys in the world can’t wipe away your debt with the stroke of a pen.
If you’re finding yourself close to personal bankruptcy, reassess your budget and cut out unnecessary expenses. Trying one of these things, or all of the above, could beneficial in helping you avoid bankruptcy in the short term. It’s important to remember that doing these things won’t be easy, but filing for bankruptcy is not your only option.
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