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For someone who is struggling to pay off their mounting debt, it can be overwhelming to sort out what to do next. While in some situations, filing for bankruptcy may be inevitable, you may be left wondering if it’s possible to avoid bankruptcy somehow altogether. The stressors of the bills and expenses you may be struggling to pay can be incredibly tiresome. You may be unsure of what to do next, and if you will ever be able to get out from under the crippling debt, you are struggling with. When faced with such an obstacle, you will probably have several questions for how best to move forward with the process:

Can I avoid bankruptcy?

The idea of filing for bankruptcy isn’t necessarily a savory one. Chances are you will want to take every possible step to avoid bankruptcy at all costs. Depending upon your specific situation, it may be possible to prevent bankruptcy by diligently taking steps to reduce debt by:

• Considering credit counseling
• Selling some of your assets
• Reconsolidating some of your debt
• Paying off as much debt as possible
• Talk to creditors, see if they will work with you
• If some of your debts have gone into collections, negotiate with your creditors

Can credit counseling help prevent bankruptcy? 

Credit counseling can play an essential role for those who are struggling financially. Credit counseling can serve you in many ways. In some cases, credit counseling may help debtors to learn of more options that may be available to them. Credit counseling is a win-win, especially if you are considering bankruptcy. This is because it is a required component should you ultimately decide that filing for bankruptcy is in your best interest. 

How will a bankruptcy filing impact my credit? 

For someone considering bankruptcy, the impact a filing may have on their credit is often at the forefront. Yes, filing for bankruptcy will affect your credit. However, it’s important to be aware that if you are careful and make wise choices moving forward, you will be able to rebuild your credit over time steadily. Chapter 7 stays on your credit for ten years, and Chapter 13 for seven years. Despite this, each year, your credit will continuously improve. 

What are some signs that I may need to consider filing for bankruptcy?

It can be challenging to come to terms with the fact that filing for bankruptcy is in your best interest. Here are some signs that may indicate it’s time to consider bankruptcy as an option for you:

• You are behind on your mortgage and at risk of foreclosure or eviction
• You have collections agencies calling you incessantly
• You are using your credit cards to pay for everyday purchases
• You are wondering how you will pay your bills every month 

Do I need a lawyer when filing for bankruptcy?

While you aren’t required to hire a lawyer when you file for bankruptcy, it may be a good idea to consult with one. While some cases can be more straightforward than others, a bankruptcy lawyer can help by guiding you through the process and answering any questions you may have. They can also assist by listening to your needs and helping you to strategize during bankruptcy proceedings. 

The thought of filing for bankruptcy can leave many with a sense of apprehension. While there is some level of stigma tied to a bankruptcy filing, it’s essential to keep in mind that by doing so, you can finally reach financial relief from the mounting debt and tireless calls from creditors that you have been facing. During such a time, it’s crucial that you not face the process alone, turn to an experienced asset protection lawyer in New Haven, CT for the help you deserve. 

Thanks to The Law Offices of Ronald I. Chorches for their insight into bankruptcy law and avoiding having to file.