3 Ways To Avoid Filing Bankruptcy

Law Blog

Filing for bankruptcy can impact your financial future for several years. However, there is a possibility that you can take measures now to avoid filing so that you can get your finances back on the right track. Here are some tips to help you possibly avoid filing for bankruptcy

Change Your Credit Card Due Dates

One of the biggest reasons people go into credit card debts is that they lose track of which payments are due on which days. As a result, they end up falling behind on their bills and before long, they find themselves overwhelmed. To avoid this, call your creditors and have the due dates moved to the same date. Choose the date each month that works best for you before calling your creditors. 

Negotiate With Your Creditors

Your creditors could potentially be willing to negotiate a repayment schedule with you if you proactively reach out to them. Your creditors want to be paid and in most instances, they can offer you new terms to achieve this goal. Before calling, be aware of what you can afford to pay. 

During your negotiations, you need to focus on how much interest has to be paid and the rate. You also need to discuss whether or not the creditor is willing to remove your account from collections if it has already reached that point. Be prepared to accept longer-term payments at a smaller rate that you can afford. 

Attend Credit Counseling

Even if you are able to get out of this particular financial situation, it could possibly happen again in the future. To prevent this from happening, you need to work with a credit counselor to pinpoint the problems that led to your financial issues. 

If you have had trouble working out an agreement with your creditors, your counselor can help you with those negotiations. If you are using a counselor that is associated with a debt counseling agency, you need to be aware of the fees that come from using the service before signing up.

In some instances, the debt counseling agencies are willing to take the payments for you and disburse them to your creditors each month. This can help ensure that all of your debts are paid on time. You might have to pay an additional rate, but this could be well worth it for you.

There are other ways you can work to keep yourself from going bankrupt. The key is to reach out to a professional as soon as you recognize you are in financial crisis so you can keep things from getting worse. 

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11 August 2015

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