Bankrupcty Protection Alternatives

One of the fastest ways to protect yourself from bankruptcy would be to talk to a credit counselor for free at 877-994-0998. They will take the time to analyze your complete financial picture and tailor a plan out of debt that fits your unique situation. Or, you could try one of the options below.

Cutting Back on the Extras

Try determining the things in your life that are non-essential or that you find you don't use anymore. Small things count and quickly add up. Do you really need that magazine subscription that your not even reading anymore? Are there Cable options that could reduce or eliminate your monthly payments? Eat out less. Eating out just a few times a week adds up to big bucks over the course of a month. You could also try cooking and staying home.

Sell, Sell, Sell!

Sell your home and car. Take the cash and pay your way out of debt and then rent and buy an old beater. To extreme? How about taking some equity out of your home and using the cash to pay down your debt. Try parting with those family heirlooms and jewelry that you have collecting dust. Cash out your 401k and/or retirement benefits. Sell that extra car you don't drive. Look for items of value that you have all around you that simply can do without, or don’t even use anymore.

Call or write to debtors and start negotiating

If you have the time, patience, and are not easily unglued by unfriendly creditors, try talking to them. Write letters, pick up the phone, and start negotiating. You can always try to settle your outstanding debts by settling on a lower amount owed without a negative effect on your credit. It never hurts to ask!

Ask for Professional Help

There are many agencies out there, public and private that specialize in getting people out of financial crisis without the need for filing bankruptcy. The Consumer Credit Counseling Services (CCCS) specialize in helping people like you get back on track. They can suggest payment options, show you how to negotiate your outstanding debt and may even stop your financial downward spiral before you end up in bankruptcy.

Decide on a bankruptcy option

When all else fails and you have decided that bankruptcy is your only way out and up, decide on the filing that will best fit your situation and your needs. While a Chapter 7 will eliminate all your debt within six months, a Chapter 13 is less damaging and may be all you need to get yourself back on your feet.