We all understand how serious a decision declaring bankruptcy can be. It truly represents the end of the last resort for anybody experiencing severe financial difficulties.
But declaring bankruptcy is a huge decision with long lasting implications. If your financial situation is troubling you enough that you are beginning to think declaring bankruptcy is your only solution, make sure you read through your options below and that you have tried every avenue before you proceed.
If it has been a while since you have been able to make repayments on your debts, or if it has been a long time since you have spoken with your creditors, then this may be a worthwhile step to take. Contact your creditors and discuss settling your debt for less than the total amount you owe, which could save you some much needed money.
Alternatively, you can discuss a break in required repayments and interest being added to your debt, which could give you enough time to get back on your feet, meaning you can avoid having to declare bankruptcy.
If you are beginning to consider filing for bankruptcy, before you make any concrete steps in that direction you should seek out a credit counsellor. It is actually now a legal requirement that you receive credit counselling from a government approved organization within 180 days before you file.
A credit counselor will have much more experience dealing with debt and creditors than you do, and can offer detailed advice on managing your money and debts, help you develop an effective budget and recommend free classes to help you better manage your finances.
Help from a credit counselor can help you reach the light at the end of the tunnel and take control of your finances without having to resort to bankruptcy.
Look to consolidate your debt
There are many places, including Trinity Financial Mission, that offer debt consolidation and debt settlement services. Consolidation may be a viable option for you if you are feeling overwhelmed owing money to several different creditors. By taking out a debt consolidation loan, you can condense all of your separate debts into one single monthly payment, drastically simplifying your financial situation and giving you back some control and spiritual calm.
Liquidate your assets
If you have any remaining assets that you are holding on to it may be worth overcoming any emotional ties you have and liquidating those assets before you declare bankruptcy. It may be difficult to sell off possessions you care about, but the spiritual calm that comes with financial security will be well worth the cost.
Consult with a Bankruptcy Attorney
If you feel you have considered all other options available to you, one last step you can take before filing for bankruptcy is to book a free consultation with a bankruptcy attorney. This attorney will be able to give you last minute advice and let you know if bankruptcy really is the best option for you.
If you are feeling spiritually troubled by your financial situation, visit Trinity Financial Mission to see if we can help you find your way back to financial security.