Bankruptcy is never the end of the world. In fact, for many who have been struggling with debt, it is the start of a new beginning. Medical debt, divorce, or loss of employment can be a harsh blow that can push many to consider bankruptcy. For individuals, Chapters 7 and 13 are viable options to get out from under crushing debt and the harassment of collection calls, evictions, and foreclosures. However, if you are trying to avoid bankruptcy, there are some steps that you may want to attempt before deciding to file your petition with a bankruptcy court. Here are just a few suggestions.
- Selling assets is always an option for those considering bankruptcy. Depending upon the level of debt and how early you are in the payment cycles, you may be able to sell some of your valuables and pay down some of the debt.
- Talk to your creditors. In some cases, when payments are overdue and a debtor was in good standing prior, a creditor may be willing to work with a client to arrange for a payment plan. It is worth a try to see who is willing to consolidate your payment plans and who can help. This would require talking to each credit company or group to which you owe money.
- Seek credit counseling. Find a consumer credit counselor who has experience working with creditors to get your payments and interest rate(s) reduced. A counselor can also put together a debt management plan to repay your debts over three to five years.
- Ask for help. Family and friends may be willing to help in a pinch if the event that is causing your debt is sudden or temporary. While you may not feel comfortable asking, they may offer on their own.
- Take action. Once you have reviewed your expenses and income, you may decide that you can not afford your lifestyle. Moving and living on a bare-bones budget may be necessary for a short time until you can get the debt under control.
- Consider a second or third job. Depending upon your circumstances, some debtors choose to find extra employment to help settle some of their debts.
- Slash your expenses. This may not seem fun but cut out all the items that you consider extraneous. Even little things can add up to a lot of money over months and years.
Remember, if these suggestions are out of the realm of possibility for you and your family, bankruptcy may be the best and most viable option to get yourself on more stable financial footing. Talk to our team about what bankruptcy would mean for you. Call the Law Office of Barry R. Levine today by phone at 978-922-8440, or visit our website at http://levinelawoffice.com.