There comes a time in people’s lives when struggling with debt and unexpected expenses in the family when they need to decide whether or not to struggle on and spend the next few decades trying to pay back what they owe or declare bankruptcy. If you are in this situation, you might be too stressed out to see your options clearly. You must weigh up the pros and cons and make an informed decision, collecting professional advice. Below you will find a few tips on how to get started.
This is a contributed post and do not necessarily reflect the opinions of Meet The Harris Family.
Get a Full Financial Assessment
The first step should be getting your financial situation fully assessed. You will need to list all your income, assets, and outgoings so you can see the facts in black and white. This way, you will see whether it is worth going down the consolidation or negotiation road. Now you can see if it’s simpler and cheaper to file for bankruptcy. Find out what the consequences of each step are. This helps to avoid ruining your financial future.
Try to Negotiate
Before you jump on the easiest solution, sit down with your creditors and people you owe. These conversations are to negotiate the terms and the repayment amount. Most companies would rather have some money than none, and if you file for bankruptcy, they might not get anything, depending on the worth of your assets.
Liquidate Your Assets
When you are going through a financial disaster, it is important that you consider giving up some luxuries and try to liquidate things you might be able to live without. If you have a second home, it might be better to sell it than to go through the process of consolidation. You might also downsize and change your car. You will still have a roof over your head, and the means to get to work, and pay off some of your debt.
Work Out What You Can Afford
If you are coming up with a plan to repay your debt, you will need to list your monthly income and expenditures. In case you are not a financial expert, you might want to get help with this assessment. Work out which expenses you can cut back on and how much you can pay back each month. Remember that bankruptcy should be your final option and the last resort.
Hire an Attorney
If you simply can’t afford to pay off your debt and bills, it might be time to consider bankruptcy seriously with all its consequences. Most people don’t know anything about the legal procedures, so you might want to contact a bankruptcy attorney to go through the process and explain to you what you can do to protect your financial future and start fresh, building up your life again.
If your finances are out of control and you are considering bankruptcy, it is important that you consult with professionals who can point you in the right direction.
