Financial issues can consume you if you
don't take care of them quickly enough. If you are thinking about ways to get
rid of your debt quickly, filing for bankruptcy may be your best option. How do
you know that it is time to throw in the towel?
Have You Tried Consolidating Your Debt?
Debt consolidation can help you lower your
interest rate and reduce the amount that you have to pay each month. In some
cases, you creditors will reduce your principal balance by a significant
amount. You can consolidate your debt in a number of ways such as a home equity
loan, a balance transfer or through a debt settlement.
Could You Sell Your Assets Instead?
If you have enough equity in your car or
home, you may be able to sell it instead of having the debt discharged through
bankruptcy. This is beneficial to you because you could see your credit score
drop by 100 points or more just by filing. When you sell your assets, your
creditor will report the debt paid in full and your account closed. This allows
you to get out of debt without crippling your ability to get a loan in the
future.
Can You Delay Payments?
When you are behind on your student loans,
you may be able to ask your lender for a deferment or forbearance. These
options allow you to stop making payments until you find a job or otherwise get
back on better financial footing. Some lenders may be willing to do this for
you if you are behind on a car or mortgage payment. Delaying your payments
until you find the money to make those payments could help you find a solution
to your money woes before you have to go for the nuclear option.
Is Full Discharge Possible?
Would you be able to fully discharge your
debts? Before you file for bankruptcy, talk to an expert such as this Chapter 7
attorney in Tampa to find out if you could have your
debts completely wiped away or if you would merely have them reorganized
instead. If you don't qualify for Chapter 7 bankruptcy, you have to make
payments to your creditors even if your filing is approved.
Bankruptcy is something that you don't want
to do without careful consideration. You need to know what type of bankruptcy
you would be eligible for, how it would impact your credit and if it would be
easier to consolidate your debt some other way.
Do you have have any questions or suggestions? Write in comment section.
