5 Options Everyone Needs to Know about before Filing for Bankruptcy

Coming to the realization that you won’t be able to pay your bills can be both scary and frustrating for your entire family. Many families turn to bankruptcy as a way to re-establish themselves and get back on track with their money. If you’re considering filing for bankruptcy, be sure to consider the following other options first. This will allow you to make the best financial decision based on your individual needs.

Negotiate

When in financial trouble, many people don’t consider negotiating. If you take the time to negotiate with your creditors, you may be able to reduce your debt significantly. You may be surprised at how willing your creditors are willing to negotiate. After all, they want your money and even if they can only get some if it, they may be satisfied. Don’t go down without a fight or without at least first researching your options with the creditors wanting their payments.

Consider Working with a Credit Counseling Company

Sometimes the best bet is to hire a professional. Along with hiring an attorney to file for bankruptcy, you may want to consider using a credit counseling company. They are very experienced with negotiating with creditors and can often times lower debt significantly by consolidating your debt and giving you options for debt repayment. This is a great option to consider before filing for bankruptcy.

Consider a Repayment Plan

Depending on the amount of debt that you have, you may want to consider creating a repayment plan. With the use of a debt repayment plan, you can break your payments into manageable chunks and avoid the bankruptcy process altogether. Make sure to research this option to see if it will be best for you. Bankruptcy lawyers can be a great resource to learn more about this option. You can also consult online sources that can help you create a repayment plan that is manageable for you. There are several free sources online, so do your research to find one that works for your and your situation.

Protect Yourself from Harassing Creditors

Many people go through the bankruptcy process because they are sick of harassing phone calls. Did you know that laws are in place to protect you from these calls? Before filing for bankruptcy, consider reviewing these laws and learn how to protect yourself in other ways. Consult Chapter 13 attorneys in Wichita. There are ways to protect yourself from creditors harassing you.

Don’t Do Anything at All

Your last option to consider is to not do anything at all. If you don’t have much money at all, debt collectors won’t be able to come after you to sue, because you don’t have the money that they want. You should be sure to consider the financial consequences of this option before you don’t do anything at all.

The bankruptcy process can be overwhelming, extremely time consuming and stressful. Before filing for bankruptcy, make sure that you know all of your options. Withe extra care and planning, you may be able to get your finances back on track without having to file for bankruptcy.

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