When you find your debts are starting to mount up, it can be a stressful situation with few options for a resolution. While exploring your options, it’s helpful to understand that bankruptcy is one solution, but it should only be viewed as a last resort. Before considering this type of legal action, you may have better luck with some other debt relief strategies.

How to Avoid Filing for Bankruptcy

1. Reduce Your Expenses

You may not realize how many unnecessary expenses you’ve accumulated. Try trimming your household spending. Start by eliminating luxury items from your lifestyle. For example, give up specialty coffee and buy groceries in bulk. Trading fast food and junk food for home cooking can help you adopt a healthier lifestyle while adding to your savings. Cancel subscriptions you don’t need. For instance, if you have internet service and subscribe to streaming sites, you don’t also need cable television.

2. Sell Your Assets

If you have significant assets, you likely aren’t eligible to file a chapter 7 bankruptcy. This means having to file chapter 13 and reorganizing those assets anyway. Depending on how much you’re able to sell, you may be able to pay off your creditors without having to take further steps. Be careful with this step. If creditors believe you are shedding property to intentionally prevent them from receiving what they are owed, they may cry fraud. Consult with an attorney first. 

3. Develop a Second Source of Income 

Earning extra money is easier than ever before, largely thanks to the internet. You may be able to work from home at a second job as a remote freelancer. If you’re creative, you can sell your artwork online. The internet is also an excellent resource for finding part-time work locally. 

An experienced attorney can help you manage your debt. Serving Rochester and all of Monroe County, the Upstate Legal Center Of John V Shepard helps clients with debt relief and bankruptcy. The firm has been practicing for more than 30 years, so they’re familiar with the options available locally. To schedule an initial consultation, visit their website or call (585) 429-5422.