When you feel the pinch of unmanageable debt, worry takes over. You might conclude your only choice is to go bankrupt.
In reality, there are options besides filing for Chapter 7 or Chapter 13. Here are a few you can try instead of declaring bankruptcy.
Negotiating with creditors
Working directly with lenders is always an option. These entities have an inherent interest in seeing you thrive. Thus, there is a good possibility they are willing to alter the structure of your payments. Be frank and pleasant with their representatives about your situation. Tell the person on the other end of the line how much you owe and what you can afford. The response could be a way out.
Working with a credit counselor
Another path worth exploring is guidance from someone knowledgeable about delicate financial situations. A fiscal advisor can communicate with creditors on your behalf. Together, they may be able to craft a workable repayment plan. Choose a professional who is a member of a reputable credit counseling organization.
Taking out a debt consolidation loan
A different way out is utilizing one of these financial instruments. Rolling all your creditors into a single account makes paying everything off easier. It might even result in lower interest payments. Conduct ample research ahead of settling on an agreement.
Under certain circumstances, going bankrupt is inevitable. That said, there is no need to rush to that conclusion. There may be another path toward reconciliation. Explore the available solutions before making a decision.