Should You File Bankruptcy?
Bankruptcy is not the only option for people in serious trouble with debt. Generally, it is a good idea to explore whether you are likely to benefit from any other options — including debt negotiation and consolidation — before filing Chapter 7 or Chapter 13 bankruptcy.
At the Tucson law firm of Trezza & Associates, we give our clients straightforward advice on whether bankruptcy alternatives are likely to work for them. Contact us to set up a free consultation with experienced Arizona bankruptcy attorney Stephen Trezza.
Explore All of Your Bankruptcy Alternatives
Bankruptcy should be treated as a last resort for situations where you simply cannot afford to repay your debts on a schedule that your creditors are willing to live with. Filing bankruptcy too soon could make life difficult if you get in deeper trouble with debt later on down the road.
Once you file Chapter 7 bankruptcy, you cannot file a Chapter 7 again for eight years, so it is important to be careful before playing your bankruptcy card.
There are alternatives to bankruptcy. You can look for ways to cut your household spending. You can try to work out payment plans with your credit cards and other lenders to lower your monthly payments. You can focus on paying off the debts with the highest interest rates first.
There are also credit management and debt consolidation companies that may be able to help you get your payments under control and negotiate with your lenders.
Do Research Before Signing Up With Debt Agencies
You may have heard horror stories about some companies offering credit management and debt consolidation services. There are definitely abusive practices out there, so it is important to read reviews and consult the Better Business Bureau before signing up with a company.
If you have already tried one of these bankruptcy alternatives and had a bad experience, filing bankruptcy may be your best option. Don't hesitate to contact us to get advice from a knowledgeable lawyer focused on your particular circumstances.
