Bankruptcy is a word that many people have an aversion to. It is linked to an idea that a person has failed, that debt has taken over and that they have no other option than to get help from the court. In truth, bankruptcies aren’t a sign of failure. They’re a sign that you recognize you need help with your finances and are ready to face the issues head on.
If you’re considering bankruptcy, the first thing you need to know is that it’s not the only option. While Chapter 7 or 13 bankruptcy are possibilities for your situation, they aren’t the only way to get out of debt. You may not be able to file for bankruptcy without losing a substantial amount of assets or aren’t able to file for bankruptcy because of your financial position. It’s important that the bankruptcy is more beneficial than detrimental, and if it’s going to have a seriously negative impact, other solutions may be better.
Debt-relief alternatives could include payment plans that have been negotiated to an affordable price, or you could allow your attorney to negotiate with your creditors to have your owed debts reduced. If your interest rates or penalty fees can be dropped from the bill, you could save money on your debts and find that you can pay them off sooner than you thought possible.
If you have equity in your home, one option may be to take out a home equity loan with a low interest rate to consolidate your debt. This allows you to take on one monthly payment that is affordable and gives you tax deductions each year. Whatever you want to do, our website has more information, so you can read and learn about your options.