Many Americans have struggled financially at some point, and while unexpected bills might make money tight for a while, many times, you can find a way to get back on track.
Unfortunately, that is not always the case. Some situations merit filing bankruptcy, but do you know when you might seriously consider that as an option for your circumstances?
Three things that might help you determine whether bankruptcy is your best option
Although filing bankruptcy may seem like the only solution for your financial situation, there are some other things you can look into first. And if you determine bankruptcy is your best chance at regaining control of your finances, at least you could file confidently, knowing you have explored your options.
When you feel overwhelmed by your finances:
- Seek credit counseling. A consumer credit counselor might be able to reduce the interest rates and monthly payments for your debts. And depending on your situation, they may be able to help you figure out a way to catch up while improving your credit.
- Negotiate with your creditors. Instead of having you discharge your debt through bankruptcy, your creditors might prefer to renegotiate terms on your loans. This could potentially give you enough relief to bring your payments current and keep your assets.
- Get legal advice. A bankruptcy attorney can help you determine whether filing bankruptcy would provide the relief you need and help you understand which of your debts bankruptcy would erase.
No matter your decision, you may need to make some sacrifices to regain control of your finances. However, once you gather information about the effects bankruptcy may have on your life, you will be equipped to make an informed choice about your future.