In some cases, bankruptcy is the best way to get a fresh start and get back on track financially. By filing for bankruptcy, you can eradicate your debts, satisfy your creditors, and crawl out of the hole that you have dug with your spending habits. Yet before you embark on the long road a bankruptcy leads, you may want to research a few other options. A bankruptcy attorney may be able to inform you on these subjects and help you to figure out your finances without ever having to declare a bankruptcy in court.
First of all, you may want to look into debt settlement. If you cannot keep up with the minimum payments on your debts, then you may be able to negotiate with your creditors. This is also called a debt reduction. Essentially, a creditor will whittle down your dues until they are at an affordable medium, and then you will repay the entire balance in full. This is best when you have a debt to pay that is not exceedingly large. Some creditors are very understanding, and would rather get a smaller amount of money from you than have you procrastinate on the actual owed amount.
In most cases, you pay the new reduced debt to a debt settler. You will want to contact a debt settlement company and they will begin receiving payments from you. They will use these installments and store them in a savings account, and then pay your creditors in full with the money. The debt settler will act as a sort of conduit and will negotiate between you and your creditors. This is a good option for people who need help prioritizing their money, but still have a significant and reliable paycheck coming in. When you agree to a debt settlement, it is imperative that you pay your debt settler on time. If you don't, then you might start receiving collection's calls, and the late payments will show up on your credit report. Sometimes, you may be able to determine a debt consolidation plan by yourself, or with the help of a financial advisor.
Another option for avoiding bankruptcy is known as a debt consolidation program. This involves making a single monthly bill payment at a reduced interest rate. Instead of paying out many little bills where you can hardly keep up with the minimum payments, you can consolidate all of your dues into one large bill. This brings the interest down. This option is only wise for people with a reliable income, who can budget their finances so that they will be able to afford repaying the debt.
Another way to avoid bankruptcy is called debt management. This is where a credit counseling agency helps you to reduce your interest rates and the penalties that you have received from late fees. With this plan, you make monthly payments to a consolidation or management company, and they help you to manage your bills and get free of debt. These services are there to help people who are bad at saving and prioritizing their finances, but have the ability to pay back their money if they try hard enough.
When none of these options sound right for you, you can try a payday loan consolidation. This is only for payday loans and cash advances which have gotten out of hand because of rollovers and extensions. If you have a lot of payday loan debts, then you can consolidate them all into one large monthly payment, and set aside money to cover the cost until the debt is repaid. Therefore, you will avoid bankruptcy and still get those payday loans paid off.
When none of these options are right for you, then you may want to try a do-it-yourself plan. If you are an organized, discerning individual you may be able to budget your way out of dent. Often books, computer software, videos, programs, or financial advisors can help you to get the plan you need to get your life back in order. When all else fails, or you do not have a steady income coming in, then bankruptcy may be your best bet. It is not always a bad thing. Bankruptcy can be a very helpful way to eradicate debt and start afresh. You will want the help of a bankruptcy lawyer to get through, so get started with some legal assistance today if you are in need of some bankruptcy help.