There are many scenarios and many different events that can bring you to the financial decision to file for bankruptcy. Each of these events is so personal that it is very hard to single any specific thing to determine as the “sign” of when to file bankruptcy. However, if you find yourself in a financial situation where you believe that bankruptcy is the only answer there are specific things that you should know before you file the paperwork with the Court.
There Are Other Options You Should Consider First
Before you opt for bankruptcy, there are other options that you should consider first. Some of these options include:
• Credit Counselling. Sometimes it just takes someone else looking at your debts and your financial situation to see things differently and find a solution to your problem. Much like spending the day looking for your car keys and having someone walk into the room and instantly find them, a second set of eyes can reveal much about your finances. The great news is that many credit counseling programs are available for free or very low lost by local organizations.
• Debt Consolidation. Debt consolidation is a step you may be able to take if you have the ability to secure a loan large enough to cover your debts. This may be possible if you have available equity in your home or if your credit score is still high enough to secure a personal loan. By reducing your payments to one monthly payment with much lower interest than most credit card debt, you may be able to overcome your financial crisis.
• Debt Settlement. Working with your credit issuing companies, you may be able to stop collections and reduce your debt burden by shutting down lines of credit and paying them off for less than what is owed. Some people can do this on their own while others use debt settlement service.
Other options may also be available in your area such as loan modifications for your mortgage, tax reduction programs for local and state taxes, and modifications for support payments through the Family Court. Consider all options prior to filing for bankruptcy. For help considering all of your options, ask professional bankruptcy attorneys, like the ones at Half Price Lawyers out of Las Vegas.