Filing bankruptcy may seem like a good option, but there might be alternatives worth looking into. We'll discuss three bankruptcy alternatives you should consider. These alternatives include:
Debt consolidation is exactly what it sounds like. It's when you consolidate your debts. Instead of paying each creditor, you'll pay one bill.
There are debt consolidation companies who can help you. They can give you an idea of how much your payments will be, after they have spoken to your creditors. Consolidating debt is one of the easiest and fastest ways to known down your debt.
Debt counseling is a bit different than debt consolidation, as counseling is exactly what it sounds like: a counselor that specializes in debt-related issues will speak with you. They can provide you with advice, speak to your creditors on your behalf and create a plan for you to get out of debt. If you don't want to file bankruptcy, then consider speaking with a debt counselor to receive expert advice.
Another thing you can do is negotiate with your creditors, even if you have fallen way behind payments. Do bear in mind that they may want a payment from you right away if they agree to work with you. Determine how much you can afford to pay a creditor and then contact them to make an offer. If they accept it, then pay the first payment right there and then.
Make sure you stick to your new payment plan. If you don't pay them on time again, then you will probably not get another chance to work out a payment plan. The good news is most creditors will be more than willing to work out a new payment plan, so contact them before doing anything.
Those are three bankruptcy alternatives worth considering. Debt consolidation, debt counseling and negotiating with creditors might be the better options than filing for bankruptcy. Feel free to compare each of the above before deciding what step you'll take next.