Can You Avoid Bankruptcy?

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Can You Avoid Bankruptcy?

Money — Greenville, SC — McMaster Law Firm LLC

Few people want to file for bankruptcy. Bankruptcy is an admission that you are not able to pay off your debts, and while it allows you to have a fresh start, it is certainly a decision you do not want to make lightly. Especially since bankruptcy will not erase every kind of debt you owe, including those owed to student loan companies and the IRS.

For many people, bankruptcy is a last resort; a sign that there are no other options. If you want to avoid bankruptcy, check out these options first.

Take Care of the Basics First

When you take care of your basic necessities, which include your food, rent, and utilities, you at least ensure that you don't go into foreclosure on your home or find yourself evicted as you make other decisions.

Of course, this tactic means you may need to say goodbye to your favorite streaming service, cable company, restaurant, and name brand foods for the time being. You should also unsubscribe from tempting emails that could prompt you to spend more money than you should while you are on this budget.

But the money you save by cutting off all subscriptions can help you determine if this short-term solution can help you pay off debts and keep creditors at bay.

Sell As Much As Possible

When you are at the end of your rope, one of the best things you can do is consider selling everything you do not need in the hopes you can use the funds to avoid bankruptcy. Clothing, DVDs, video games, electronics, and even some furniture can be sold online or via mobile apps.

While selling items in your home is not a desirable option, it does prevent damage to your credit score if you are able to avoid bankruptcy.

Talk to Creditors

Communication can often go a long way when you want to avoid bankruptcy. Some creditors may be willing to give you a break or put you on a payment plan if you are at risk for bankruptcy and need some assistance. So it's important to try reaching out to your creditors to see if you can work with them.

Seek Credit Counseling

Credit counseling may be helpful if you need to put a financial plan in place and improve your credit. Credit counseling may also help you communicate with creditors and perhaps even consolidate your debt if it is a viable option for your situation.

Pick up Another Job

Next, you might consider picking up another job that will provide you with an extra source of income. You can designate the income from your second job to only paying off debts with some strategic planning. Keep track of how much you make from this job and ensure you funnel all this money toward your debt.

If you already work full-time, you might consider projects you can work on from home or on the web with skills you already have, like refurbishing old furniture you find or editing resumes on the Internet.

Speak with an Attorney

Next, you should speak with a bankruptcy attorney to discuss your options. Often, bankruptcy is the best option for your family. You may not be able to pick up additional work shifts or sell your car for extra money. Each situation is different, so it pays to speak with a professional who has experience with bankruptcy.

We at The McMaster Law Firm, LLC, understand your situation. Our team of professionals will help you determine if bankruptcy is the best option or if you may be able to avoid it with a few extra precautions. Not sure if it's time? Call us today to get the help you need and consult with an attorney.

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