Filing for Chapter 7 or Chapter 13 provides relief to many people suffering under the strain of financial debt. A benefit of the overall bankruptcy process is that debtors learn how to better manage their finances and plan for future contingencies. However, sometimes unfortunate circumstances and financial crises occur that suddenly place people back into severe debt.
Common causes of debt include:
- Medical emergencies
- Making irresponsible purchases
- Mismanaging finances
When paying off your debt seems impossible, your best option may be to file for bankruptcy again. However, this choice is only available if you pass the eligibility requirements and if it’s been several years since the completion of your last case.
If you would rather avoid filing for bankruptcy a second time, here are some steps that may help you alleviate your debt.
Step #1: Discuss Your Situation with Your Creditors
Ultimately, bankruptcy is not easy on you or your creditors. If you’re feeling uncertain about your financial future, contacting your creditors about your situation is the first step in negotiating a repayment plan or an extension. In some cases, creditors are willing to charge less interest or settle the debt for less to avoid future hassle.
Step #2: Find Ways to Increase Your Available Funds
Another way you can reduce your debt is to find ways of supplementing your regular income and improving your overall financial standing. If your situation allows it, you can get a second job until you accumulate enough money to pay off your debt. Or, you can sell off nonessential assets or property that can pay off your credit cards.
However, the easiest way to pay off your debt is to save money by budgeting. You can generate extra cash flow just by meal planning, cancelling unnecessary subscriptions, and by being careful with your general monthly expenses.
Schedule a Free Consultation
Contact The Buchalter Law Group if you require legal guidance and want to review your bankruptcy options. Our knowledgeable Brevard bankruptcy lawyers have over 35 years of legal experience and have helped thousands of clients surpass their difficult financial trials. The objective of our firm is to help our clients successfully navigate the bankruptcy process and develop the skills they need to live debt-free lives.
Call The Buchalter Law Group at (321) 320-6088 to explore your bankruptcy options.