Bankruptcy can provide a fresh start, but it isn’t appropriate for everyone. Take into consideration the severity of your debt and your future financial goals before filing. Alternative options can often offer more manageable outcomes and let you keep your credit intact.
Negotiating with creditors and reducing your expenses are great strategies to avoid bankruptcy. This strategy should be implemented prior to filing for bankruptcy and requires careful budgeting and financial planning. If you can reduce your expenses or negotiate a less interest rate, the money you save can be used to pay off your debt.
Selling assets is a way to lower your debt burden. This will help you to pay off your debts, and could save you from having apply for Chapter 7 bankruptcy. The best thing to do before selling your assets is to meet with a bankruptcy lawyer and make sure you’re eligible for this kind of relief.
In bankruptcy the court will erase or “discharge” most unsecured debt which includes credit card payment and medical bills, late utility bills, and personal loans. Certain debts, such as https://brittandcatrett.com/2022/01/04/consumer-and-small-business-solutions/ student loans, tax refunds in recent years, alimony, and child support, will be able to survive bankruptcy. The best way to approach filing for bankruptcy is to concentrate on erasing non-priority unsecured debt and then using any money saved towards more costly debts that won’t be eliminated by bankruptcy.
