When making ends meet becomes an impossible task, bankruptcy may very well be a good way to reduce financial stress and get back on the right financial path. However, many bankruptcy alternatives exist that may be better-suited to try ahead of this option. Bankruptcy benefits every person who files, but there are disadvantages as well. Bankruptcy should always be the last option that you resort to when other options have failed. Some of the alternatives to bankruptcy to try first include:
· Debt Consolidation: Debt consolidation allows you to get one loan to pay all of your debts at a rate you can afford. It is a type of loan with several available options to pick from. Never use home equity as your consolidation method.
· Pay Off Debts: Pay off the debt, if you can. Many creditors will settle for an amount less than owed if you agree to pay the balance in full. It may be ideal to find out if this option is available for your situation.
· Debt Management: Debt management has pros and cons. Consider each category before you decide to go through with a debt management plan.
As a general rule of thumb, if the debts you’ve racked up can be repaid in a period of six years or less, bankruptcy may not be the best option. This varies for each person and situation, however.
Should you decide that it’s time to file bankruptcy, never attempt it alone. Instead, consult with an attorney first. Lawyers have the legal expertise that can ensure bankruptcy does not cause you more worry and frustration than it should. Reach out to a lawyer, schedule a consultation at law offices in rockville Maryland, and get the help a lawyer brings to this matter.