If you aren't 100 percent sure you want to declare bankruptcy, I want you to make a phone call. And it's not to me.
Call the hardship departments of your credit card companies, your auto lender, and your mortgage lender. Let them know you are considering declaring bankruptcy, and ask them if they can work with you to lower your payments.
The thing is this: Credit card companies and banks do not want you to declare bankruptcy. If you do, they won't get a penny. And since they'd rather get something than nothing, it's worth a shot to call them up and ask them what—if anything—they can do to help you lower your payments.
When you call, have a specific dollar-amount in mind that you know you can afford to pay each month, and don't settle for paying a single penny more. Say something like, "If I can pay $100 a month for the next twelve months, and then go back to making my original payments, I can stay out of bankruptcy court."
I know it's weird that a bankruptcy firm is giving you advice on how to stay out of bankruptcy, but here at Atlantis Law we truly believe in helping clients and non-clients recover from their financial mistakes so that they can enjoy a bigger future. And the truth is: bankruptcy isn't for everyone. Although bankruptcy helps people wipe the slate cleaner and start anew, it is a big decision that shouldn't be made before you gather as much information as possible.
And sometimes, the solution is as simple as calling your creditors.
Keep in mind, though, that if you do not have a clear plan for digging yourself out of your financial hole, you should consider exploring bankruptcy. And here's why: If you are struggling with your finances, and you do not see a light at the end of the tunnel, you will probably continue to struggling for a few more years. As you fight to stay afloat, you will likely miss some payments here and there, causing your credit score to drop even more. In two years, it will be the same (or worse) than it is now.
If you need more information about bankruptcy or anything that is pertaining to your financial situation we can help, we will get you in touch with one of our Attorneys that will give you strategies that will help you through this tough time. So contact us now and we will pave a new financial future for you!