The letters from creditors continue to make their way to your mailbox, and with each passing letter, the stress level goes up. In fear of receiving threatening phone calls and mail, you have started to stop answering your phone calls or even checking the mail. You are starting to worry and are even feeling as if your health is deteriorating due to the stress level, and now, you are contemplating bankruptcy. Bankruptcy should serve as a last option, and until you have exhausted alternative pathways, you should not consider bankruptcy.
When dealing with huge debt, you have alternatives: pay the bills, file for bankruptcy or speak to a specialist who can get you an out-of-court settlement case with your creditors. Creditors never want to have a debtor file for bankruptcy because they will lose out on the owed money; instead, creditors will often agree to fix the issue out of court with the debtor by giving him reduced interest rates and monthly minimums. In order to qualify for an out-of-court settlement, you must contact a specialist or company who can negotiate with creditors, but please understand, not all who hope to settle out-of-court will be allowed to. For example, various online websites help talk to creditors to renegotiate the terms of your debt, while other lawyers, such as a Woodland Hills bankruptcy attorney or a Downey attorney, could help you avoid filing for bankruptcy.
For people with homes, you have a special advantage of being able to take equity from your home to repay your debt. If you elect to borrow money from your home, you can run into other problems and lose your home as well, so it is good not to borrow too much equity. Before you even think to take money out from your home, it is a good idea to speak to an expert who can give advice for the safest way to take equity and help repay some of the debt that you owe.
Debt counseling offers assistance for people with a large amount of debt, allowing debtors to consolidate their bills into one monthly payment with lower interest rates. The one monthly payment makes paying your bills less stressful, and the lower interest can save you thousands of dollars. Not all people will be eligible for debt consolidation, as you may possess more debt than you can ever repay and even consolidating will not help. Please note, bankruptcy is a last resort, and if debt counseling is not useful, you can always speak to a Los Angeles or even a Thousand Oaks bankruptcy attorney to see how bankruptcy will change your life.