You might be going bankrupt, but you're not ready to give up just yet. There are a few things you can do instead of filing for bankruptcy. It's important to know what's best for you, and you can talk to a pro about your options. There are trained people, like bankruptcy lawyers, who can help you decide which of the options might be best for you.
Most of your creditors will be willing to work with you because they will make more money if you pay off your debts with their help than if it is written off in court and they don't get any money back. In other words, they don't want to pay off the loans. If you want to avoid going bankrupt, you should hire either a lawyer or a professional negotiator. Debt counselling groups that are not for profit can help you find a professional negotiator. You can also find these people in the phone book or online. You will want to check references to make sure you are working with a reputable company. People who owe money know that their creditors will send them to collection agencies, which will harass them. It's important to have someone answer the phone while you're trying to come up with terms that work for both you and the company. This will help you feel less stressed.
When you are already struggling, it can be hard to find the money to pay for a bankruptcy lawyer. However, remember that non-profit organisations do hire professionals to help you. A credit negotiator can work out a deal with the company that has a claim against you for a smaller cash payment. This will help you settle the claim. You might be able to pay less each month, or you might be able to give them a lump sum to stop the company from going bankrupt. With this lump sum, you can pay off the debt and move on to other debts.
If you can pay off the debt right away, the percentage you may have to pay may just be the amount you owe without interest. They could use a plan called an Individual Voluntary Arrangement, which says you have a certain amount of time to pay back a certain percentage of the loan.
You should try other things before filing for bankruptcy, since it can hurt your credit score. If you still have good credit, you might want to try something else, like refinancing your loans into one big loan. If you consolidate your loans, you may be able to get a lower APR and still keep your credit score.
You can also try moving balances from one credit card to another. Be careful when you move money between accounts. Transferring money itself doesn't hurt your credit score, but closing or opening too many cards in a short amount of time can. It's important to have lower interest rates, but you don't want to hurt your credit score in the process. See http://www.filingpersonalbankruptcyhelp.com for more information on how to file for personal bankruptcy.
There are options besides filing for bankruptcy, but you have to know where to look. You don't want to listen to bad advice, so you should find a reputable company or even a non-profit that can give you the advice and guidelines you need to avoid bankruptcy.
