Are you drowning in debt? Does it feel like every time you've finally got your finances on track another setback occurs?
You're not alone. Knowing if and when to file for bankruptcy can be life-changing for some people. Are you one of them? Learn below.
1. Have You Tried Credit Counseling?
Before you declare bankruptcy you may consider talking to a credit counseling service. First off, they'll help you understand your spending habits so that you don't go right back to them if and when you declare bankruptcy.
They can also help you consolidate your payments or get them down to a more manageable interest rate so that you can afford to pay them off.
Credit counseling services take a cut of what you end up paying; otherwise, they wouldn't be in business. But this strategy may be helpful in getting debt to a manageable level.
This solution is not for everyone, but it's worth looking into. Most services do a free call or consultation.
If you think there's still any way you can pay your debt back, try this option first.
2. Have You Exhausted All Options?
If you’re short on cash and struggling to keep up with bills, perhaps there is an option you haven’t explored yet. Here a few ideas to consider:
Do you have any valuable property or assets, such as a boat or car that you don't use that often that you could sell? Selling jewelry or other valuables could help you get the extra cash you need to get caught up on your debts.
Did you have time and the ability to take on a second job? What untapped talents do you have that you could profit from? Do you have the skills to provide a service to others, such as handy-man repair work or lawn maintenance? A lot of people go straight to on-demand work options like driving for Uber, Lyft, or food delivery when they're considering a second job. If you have a qualified vehicle and some extra time this might be a solution for you.
Perhaps a small private loan might be an option? If you have a relative or friend who may be able to loan you enough money to help you get out of debt and caught up on your bills, it doesn’t hurt to ask. If you do this, you need to make sure you treat it like any other loan. You'll need an agreement, a repayment schedule, and agreed upon interest.
If you’re in too much debt for any of the above suggestions to work, unable to bring in any extra income, or not in a position to pay back a loan, then it’s time to consider bankruptcy.
3. Have you Consulted with a Bankruptcy Attorney?
If none of the options above are likely to help you get out of debt, you should schedule a free consultation with a lawyer. Bankruptcy attorneys are well versed in all debt situations and can walk you through what they think is best.
Declaring bankruptcy isn't always the right choice for everyone. For example, if you have less than the amount of required debt to file for bankruptcy, then it's not for you. Since these consultations are non-committal, an experienced attorney will guide you in the right direction.
Is Bankruptcy Right For You?
Still unsure if it’s time to consider the benefits of bankruptcy? Call the Law Office of Marilyn D. Garner now at (817) 381-9292 for a FREE consultation to discuss how bankruptcy may help you. We will walk you through your options and give you the right legal guidance along the way.