Posted on: 25 June 2015Share
If you are thinking about filing for bankruptcy, it may be because you are unaware that you have other options available to you. A bankruptcy will affect your finances for a long time, so it is important that you do so after exhausting other avenues. Try the following things before you file for bankruptcy.
Speak with Your Creditors
Have you spent a lot of time dodging calls from your creditors? That can be a mistake. Your creditors may be the last people you want to speak to, but doing so can sometimes help you. If you negotiate payments on a bill you owe, even if it's below the amount they are asking for, you may be able to stop receiving threatening calls. They may simply accept lower payments as long as you make the payments regularly, or there may be programs available for those with hardships. Talk to them about what you can do to set your account straight, and you may be able to proceed without a bankruptcy.
Ensure Your Debt can be Discharged
You may not know this, but there are some debts that you are responsible for even after you file for bankruptcy, no matter how much you owe. For example, If you are filing for bankruptcy because you are having difficulties with student loans, a bankruptcy will not help you because you must still pay those particular loans back. Therefore, before you file for bankruptcy, make sure that your debts are able to be discharged.
If you are able to take out a loan, consolidating your debts may be a solution for you. You can take out one loan that will cover your debts, and instead of writing multiple checks to multiple creditors, you'll only make one payment a month. That may help you to get your finances under control.
Start Your Own Business
If you are already working, you may not think you have time for a second job. However, if you are facing bankruptcy, the need for more income is clear. Starting your own business can be a way to bring more money in while preserving your current work schedule.
What kind of business should you start? Look for opportunities that allow you to use skills you already have. Maybe you can mow lawns for your neighbor or seek freelance work in your field. A few days of work each week may not make you rich but can help reduce your debts.
If you use the tips in this article, you may be able to avoid filing for bankruptcy. However, if you choose to file for bankruptcy after all, consult a local bankruptcy lawyer like Donna C Crooks Atty At Law. They will be able to help you through the process so you can get back on your feet.