Bankruptcy may seem like it is inevitable but there are a few strategies you can try before filing. Follow some of these steps before you decide that bankruptcy is the only option left.

avoid bankruptcy

  1. Talk to your creditors. Let them know that you are facing a potential bankruptcy and see if there is anything they can do to help you out. Oftentimes, they will work with you so that they will only lose some of the money that they lent to you. If yo
    u go through with bankruptcy, they will lose it all. Try to talk to them about lower interest rates or even a repayment plan.
  2. Refinance or sell your property. Depending on the bills you are behind in paying, you may want to consider refinancing the home to get cash out or even selling it. If you are behind on mortgage payments, it will be a better option to sell the home. However, if you are behind on credit card debt, the best option is to refinance your home so you can get cash from it and pay off your debts at the same time. You do not have to lose your home.
  3. Consider selling bigger purchases. This will only work if it makes sense. However, if there are two adults and you own three cars, sell one of them. This will reduce the amount you owe each month and will provide you with some quick cash to pay off other debts. If you need both cars but recently bought a new car, consider selling it for a cheaper, yet still reliable, option.
  4. Ask to borrow money. If you are already in financial trouble, this can be difficult to do with other lenders but you can always ask to borrow money from friends and family to get you back in black. Just be sure to pay them back as soon as possible. There is no good that cane some from burning bridges to get some quick cash.
  5. Live below your means and make sacrifices. If you are facing bankruptcy, you should seriously reassess your budget. Take a look at the things you spend money on and cut out any extra expenses. Doing this will free up a lot of money so you can stick to your repayment plans. Cut out all unnecessary spending from your daily life and see how much more you have to actually pay back your debts.

Using these steps before filing for bankruptcy will leave you in a better financial position later on. If you believe bankruptcy is the best option, schedule a free consultation with Clark & Washington today.