When you’re unable to meet your financial obligations, bankruptcy can provide a way out and allow you to wipe the slate clean. However, seeking debt relief through the courts can have a dramatic impact on your credit, which is why many people consider it a last resort. Below are some tips bankruptcy lawyers suggest to try before filing for bankruptcy protection.
5 Ways to Avoid Bankruptcy
1. Sell Your Assets
Almost everyone has excess belongings they don’t need, which essentially amount to wasted money. In times of financial crisis, selling any unnecessary possessions, such as high-end clothing items or artwork, can help you catch up on past due payments and keep your head above water.
2. Set a Household Budget
Tracking your finances for the past few months will help define areas where you can cut corners, leaving more funds to pay off your bills. Until you’re out of debt, prepare all your meals at home, cancel cosmetic and magazine subscriptions—and perhaps even streaming services—and always keep your budget in mind when making financial decisions.
3. Find a Second Job
A second job can provide the money you need to get out of debt and on with your life. The current economy offers a wealth of opportunities that allow you to set your own hours and start earning supplemental income faster than a traditional job. For example, if you enjoy photography, apply for freelancing gigs that will allow you to work when you can.
4. Work With Your Creditors
Credit card companies and other lenders know they’ll likely receive nothing if you file for bankruptcy, so they try to work out solutions with struggling borrowers. In some cases, your creditors may be willing to reduce your overall balance, cut your interest rate, or add your past due amount to the principle.
5. Speak With a Bankruptcy Lawyer
Even if you’re not ready to file for bankruptcy, an attorney can help you find the path to solvency. In addition to identifying all your debt relief options, bankruptcy lawyers can also negotiate with creditors on your behalf and help you find credit counseling services.
If you’re struggling to keep up with unmanageable debt, Mark O. Grater Attorney at Law will provide the resources, legal advice, and effective solutions you need. For over 30 years, this law firm has been helping New London County, CT, borrowers reclaim their lives from even the most desperate situations. Visit their website or call (860) 449-8059 to consult with an accomplished bankruptcy lawyer.