Financial difficulties can happen to anyone. Whether it is caused by poor financial decisions or external factors like job loss, health issues, or something else, it is important to take steps to get back on the right track. In some cases, filing for bankruptcy is going to be the only real way to get out from under crushing debt. There are, however, alternatives to bankruptcy that should be considered first. These alternatives can often get your finances in order more quickly and with less of a long term impact than would otherwise be possible.
Negotiate with Creditors
If you are falling behind on your bills due to debt from credit cards, personal loans, and other issues with creditors, you can often negotiate with them to get caught up. Many creditors will be willing to make arrangements to help you through your situation because if you do end up going through bankruptcy, they may not be able to recover any of the money that is owed to them. If you try to negotiate with creditors on your own, make sure that you always get everything in writing before you move forward with a deal.
Take Advantage of Programs
There are a variety of local, state, and federal programs that are designed to help people through difficult financial situations. For example, if you are behind on bills because your house payment is too high, you may be able to get your payment adjusted to something more reasonable through one of many government options. Many mortgage companies also offer modification options to their customers to help avoid foreclosure and bankruptcy.
If your credit score is still fairly high, you may be able to get a debt consolidation loan. These loans can help by bringing all your debts current, and make them easier to pay with just one monthly check. Debt consolidation loans may also help to reduce your overall interest rate and lower your total monthly payment in some cases.
Whenever having financial difficulties it is important to not just look at how much money you have to pay out each month, but also look at what is coming in. Taking on a second job, working overtime, or looking for other ways to bring in some extra cash until you get things back on track can be very effective. In fact, many people are able to increase their incomes to the point where they can get themselves out of debt entirely.
We are Here for You
If you want to engage in any bankruptcy avoidance effort that involves any type of legal action (loan modification, debt consolidation, negotiating with creditors) you may want to have an attorney available to help you along the way. In addition, if you do find that bankruptcy is the best solution to your situation, an attorney will be able to help you to get the results you need. Contact Cutler & Associates to talk to us about all your financial needs.