When you realize that you might not be able to pay debts on time or in full, you might find yourself feeling anxious, frustrated and confused. Filing for bankruptcy in the Green Bay area might seem like the right solution, but it is not ideal for everyone.
It is important for you to take time to assess your situation and consider the following bankruptcy alternatives, so you can resolve your financial challenges in the most beneficial way possible.
Inform the creditors
If circumstances make it hard for you to send in timely payments or not send them at all, contact your creditors. Do not feel ashamed of your circumstances. Creditors understand that people fall on hard times, and many companies have repayment programs in place to help debtors prevent their accounts from falling into default.
Liquidate nonessential assets
You may have some valuable unused items in your home that you can sell, or you may be able to reconsider your lifestyle and make some changes. You may even find that you can manage without that second car and sell it and use the profits to catch on your delinquent debts.
Consider debt settlement
You may be thinking about debt settlement because of the testimonials you see on television. Debt settlement is not a one-size-fits-all solution, and some people find it more beneficial than others. This option is when you negotiate an agreement with your creditors that allows you to pay less than the full debt to bring your accounts current and paid in full. You may save a significant amount of money initially, but keep in mind that often, forgiven debts count as income, and you could end up owing taxes on the amount.
Before choosing a debt resolution option, be sure to consider the benefits and disadvantages of each and how they apply to your situation. You may also want to speak with an attorney for guidance.