Should you be considering bankruptcy more seriously?

Your financial situation is a mess. You have mountains of unpaid bills and creditors calling, and you have likely lost sleep due to the stress your financial instability has caused. You may feel that you have become the sole survivor of a sinking ship, but you are not alone when it comes to dealing with debt problems. Numerous people across the country face similar circumstances, but while this idea may seem somewhat comforting, it does not necessarily help you deal with your money problems.

A step that could help you address your outstanding debt relates to reviewing your debt relief options. Just as many people struggle with liabilities, a considerable number have also found a lifesaver by understanding the various ways in which they could address their financial issues. In particular, bankruptcy helps numerous people get their finances back on track, but you may wonder whether this action suits your circumstances.

What are your other options?

Because bankruptcy often comes with a negative stigma and because many myths circulate around the process, you may feel hesitant to consider this avenue a viable option. This uncertainty is understandable, and you have a right to explore other potential relief methods. However, alternative methods may not provide the outcomes you need.

Some possible steps you could take to address your debt include:

  • Negotiation: A first step you may consider involves trying to a negotiate settlements with your creditors. In some cases, you may have the ability to lower your owed balances. However, some creditors may not feel the need to negotiate, and you could remain on the hook for your entire balances.
  • Credit counseling: If your attempts at negotiation prove unsuccessful, you may try credit counseling. A credit counselor could speak with your creditors on your behalf and work to lower your payments and interest rates. In some instances, you may need to take this step before filing for bankruptcy anyway.
  • Using savings: Having a savings account can often feel like a safety net in the event that an emergency occurs, and you need money quickly. If you face a substantial amount of debt, you may consider using those funds to address your balances. Of course, even using those funds may not make a big enough dent in your liabilities.

While trying these and other avenues may be worthwhile, they may not help you handle your debt in a significant way.

Has action been taken against you?

It may prove wise to consider bankruptcy more seriously if creditors have already taken actions against you. Wage garnishment and lawsuits can both act as red flags that your debt has gotten out of control. Fortunately, filing for bankruptcy could stop these actions while you get your financial affairs in order.

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