Bankruptcy is a big step to take, even if you have large amounts of debt you’re having difficulty paying back. It stays on your credit report for 7 years and can impact your ability to get a mortgage or apartment rental, car loan or even a full-time job. If you have debts but don’t want to declare bankruptcy, there are several other options for you to consider.
Take no action
If you have no income or are retired, you may choose not to declare bankruptcy because your creditors are very unlikely to initiate legal action against someone with no assets. It would not be worth it for them to try and get money back from someone who has no money to give, so declaring bankruptcy would have no real impact on your financial situation.
Better money management
If your debts are more manageable, you may be able to pay off at least some of your monthly payments by reducing your household expenditures. If you take a good look at what you’re spending each month, you’ll probably be able to find places where you can spend less.
Negotiate with creditors
Most creditors are willing to negotiate a reduced payment because the only alternative is for you to declare bankruptcy, which would result in them getting none of the money you owe them. Therefore, it’s certainly worth a try to see if you can come to an arrangement with your creditors to avoid bankruptcy, since it could work out better for both of you.
Debt consolidation involves borrowing money from an institution such as a bank at a low interest rate to repay your debts that have a higher interest rate. You will then be able to have lower monthly payments to the bank that gave you the loan. With the economy the way it is now, it’s much less likely that you’ll be able to consolidate your debt, but it’s still worth a try.
There’s a lot to think about when determining how to best reduce your debt while still having the standard of living you want. If you would like more information about bankruptcy or any of these other options, call the best chapter 13 bankruptcy lawyers in Las Vegas at (702) 252-4673 for a free consultation.