Many people struggle with debt, but if you’ve started falling behind on your bills, it presents an especially challenging situation. Before too long, creditors will start calling and sending letters inquiring about the money you owe. While you might be tempted to ignore their efforts to collect, this will only serve to make matters worse. It’s likely they will eventually file a lawsuit and request a judgment forcing you to pay. However, this can often be prevented if you work out a repayment plan or declare bankruptcy. Here is some insight into what you can do to regain your financial footing. 

Negotiate a Repayment Plan 

If you are unable to pay even the minimum amount on your monthly bills, you should consider contacting your creditors to explain the hardship. Find out if they would be willing to negotiate a repayment plan that involves temporarily lowering or suspending the amount you owe while you work to get caught up. Often, if you present a clear picture of your financial burden, along with a proposed payment arrangement, creditors will agree to give you some leeway on paying back your debt. 

Consult a Bankruptcy Attorney 

If creditors don’t accept a repayment plan, it might be time to consult an attorney about filing for bankruptcy. They will help determine if this is the right course of action to take. Whether you move forward with a Chapter 7 or 13, this will give you the opportunity to discharge all unsecured debts or reorganize them into an affordable payment plan, so you can focus on rebuilding your financial health. Additionally, as soon as the paperwork is submitted, you will be granted an automatic stay that prohibits creditors from continuing with their collection efforts. 

Whatever your reason for facing financial trouble, it’s important to start taking steps toward eliminating debt as soon as possible to avoid creditor lawsuits. Should you decide that declaring bankruptcy is the best solution for your circumstances, the legal team at O’Connor, Mikita & Davidson can guide you through the filing process. They offer over 20 years of experience and an established track record of success when it comes to helping Cincinnati, OH, clients achieve debt relief. Call (513) 793-5297 to discuss your financial goals with one of the firm’s skilled bankruptcy attorneys, or visit them online to learn more about their services.