When you feel like debt is crushing your life, it’s easy to understand the appeal of bankruptcy. The knocks against your credit will be harsh, but the opportunity to wipe the slate clean is highly alluring. Depending on your situation, bankruptcy may indeed be the best course of action. However, it’s always worth exploring what other options you might have to help get yourself out of this hole of debt…
Try to budget your way out
Oftentimes, what people think of as a debt problem is more accurately described as a lifestyle problem. In this scenario, there is a path to figuring out how to manage your debt without declaring bankruptcy, but not without making substantial lifestyle changes.
This doesn’t mean trying to get by without basic necessities, such as food or shelter for you and your family, but it means that you need to wrangle your current financial problems under an attitude of austerity.
Negotiate with creditors
Many people view creditors in the same way that they might view the Terminator, but it’s important to remember that they are still people with their own agendas. At the end of the day, they just want the money to be paid back to them in some way. Because of this, you might be able to renegotiate the conditions of your repayment, which could open up some breathing room in your financial situation.
Oftentimes, it’s possible to negotiate longer grace periods, smaller monthly payments, or possibly even the amount to be repaid, if you are able to pay it back in a lump sum.
Hire a professional
A professional bankruptcy attorney is going to be able to give you better context about what declaring bankruptcy will do to your credit and how it will affect your life. As such, they can also direct you down different paths that can make it possible to get out of your current financial predicament without having to resort to bankruptcy.
The point is, you want to make sure that bankruptcy is your last possible option, rather than something you jump into, head-first.