If you can’t find your way out of your current financial mess, then bankruptcy might feel like your only option. While there are times when bankruptcy makes sense, don’t assume that you need to rush to file without evaluating other possible solutions.
Don’t panic. It’s possible to survive financially if you tap into the right resources that are available. Consider a few of these options:
· Sell Assets: If you don’t have enough to pay the bills, then selling assets can be a great way to come up with immediate cash. Big assets such as furniture, cars, and recreational vehicles can be a significant infusion of cash. Or, smaller sales can add up by holding a garage sale or listing items on Craigslist or Facebook Marketplace.
· Debt Settlement: When creditors know that you are considering a bankruptcy filing, then they are often willing to settle the debt for a fraction of what you owe. Creditors see that getting a portion of the money is better than getting nothing at all, which is why a partial payment will be considered. For this to happen, your accounts need to be in default. Then, you need to work through negotiations for the debt settlement plan.
· Debt Consolidation: One motivation for bankruptcy is because you can’t keep up with the payments each month. An alternative is to implement a plan using debt consolidation. Through this process, your debts are rolled into one loan – giving you an affordable monthly payment and a pay-off plan that can help you reach financial freedom in the future. Plus, debt consolidation helps to lower your interest rate and minimize the money you are paying for late fees and overdrafts.
Is Bankruptcy Right for You?
Every situation is unique, which is why it is smart to talk to a bankruptcy attorney and a financial advisor before moving forward with the filing. Depending on your situation, you might be able to use one of the alternatives listed above to get ahead of your finances with minimal damage to your credit. But there are times when bankruptcy makes sense if you can’t make it through the current financial situation.
Are you considering bankruptcy? Then we invite you to contact our knowledgeable team at Miles & Hatcher, LLP. We’re happy to schedule a free consultation to discuss your situation: (909) 481-4080.