You want to make sure that you have tried everything you can in order to resolve your financial issues before you file for bankruptcy. To help make sure that you have done your best, you will want to take a few moments to review the following suggestions.
Ask For A Repayment Plan
Sure, most creditors will start off their conversation with you asking for the total amount due. This is because it is in their best interest to collect all of it at once, but many companies are willing to work with you if you simply ask. Simply state that you are unable to pay the past due amount in full and you would like to make a payment arrangement for it. This might mean that you make one regular monthly payment every month, plus a half of a payment that will be applied towards the past due amount. You will continue to do that every month until your account is caught up. Depending on their company policy and your financial situation, you might even qualify for a small repayment plan payment, such as a payment and a quarter every month.
Try To Have Your Interest Rates Lowered
If you can get your creditors to lower your interest rate, you will have smaller monthly payments. You may have an easier time keeping up with your monthly payments if they were just a little less each month. This is generally not something that your creditors will offer to you. You have to ask for it. Explain that you are experiencing financial difficulty and that you are on the verge of bankruptcy. Then explain that you are trying to avoid bankruptcy and would like to know if they would lower your interest rate in order to help you do that. Depending on the type of bankruptcy you file, you may never have to pay them another dime so they might be more willing to work with you just to avoid that from happening.
Consolidate Your Debts
While it is generally best to avoid getting any more credit when you are already on the verge of filing bankruptcy, you might find that a consolidation loan is exactly what you need. They will take a lot of your debts, pay them off for you, and then you are responsible for one monthly payment to the consolidation company until they are paid off. This saves a lot of people money because instead of multiple creditors charging various interest rates, you will only have one company charging you a more manageable interest rate. This usually means you save more money each month.
With those few suggestions in mind, you should know what steps you should try next in order to get your finances under control. If those do not work out for you, then it may be time to call a quality bankruptcy attorney, such as Clinger Richard S.