Is Bankruptcy My Only Option?
Written by
Jose Vazquez
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Overwhelming debt can be a scary thing. You work hard to pay your bills in a timely fashion but they always seem to be right at your heels. To some, bankruptcy may be the only answer. There are, however, other alternatives to keep you from having to declare bankruptcy. By investigating these options, you may find a way to avoid bankruptcy and get back on track.
Managing Your Money May Help You Avoid Bankruptcy
It is vitally important to know where you stand financially. Hiding with your head in the sand will only make it worse. Some people believe that, if they just ignore their debt, it will go away. The best way to avoid bankruptcy is to know where all of your money is going. Create an expense report for yourself. Know what is going out as well as how much is coming in. You may be able to see areas in your finances in which you can eliminate unnecessary spending and manage your debt on your own.
Restructuring Your Debt May Be an Alternative to Bankruptcy
Sometimes it is necessary to restructure your debt. This may involve negotiating with creditors or consolidating debt. By restructuring your debt, you may be able to create a more realistic payment plan that allows you to pay off debt in a longer time frame. It is important to discuss your options with creditors before embarking on any type of restructuring so that you know you are setting up the right type of debt management for you.
Creditors need you as much as you need them. Any monies coming to them are better than nothing at all. Examine your options before resorting to bankruptcy. You may be able to work out a plan that suits everyone’s needs and keeps you afloat.
