You have reached a point in your life where you realize that your financial troubles can no longer be ignored. For a time, you may have convinced yourself that your situation did not pose a considerable issue or that you could get a handle on your affairs when you reached a point you designated in your mind. However, that point either never came or did not offer the relief you thought it would bring.
Now, you wonder what options you have for addressing your overwhelming debt. If you have discussed your situation with friends or family in hopes of obtaining advice, someone may have suggested filing for bankruptcy. Of course, due to misconceptions, you may think that you should avoid that option. However, more information may help you determine whether you should give bankruptcy its due consideration.
Actions taken against you
Many people do have at least a small window in which they could consider other ways to address their financial liabilities. You may need to take more direct action if either of the following actions have already been taken against you:
- Wage garnishment: When creditors garnish your wages, they obtain money directly from your paycheck, meaning that money never makes it into your hands. As a result, you do not get to decide toward which expenses those funds go. Additionally, this action could cause you further difficulties as you may need every penny you earn in order stay afloat.
- Lawsuits: In some cases, creditors may choose to sue individuals in hopes of obtaining the amount owed to them. If you have had a lawsuit filed against you, your situation may be more serious than you thought.
In either of these situations, filing for bankruptcy could act as a beneficial step. Once the court accepts your petition, garnishment and lawsuits come to a stop for a designated period. This hold could help give you time to get your affairs in order through the bankruptcy process.
Actions you could take
If you still feel apprehensive about filing for bankruptcy, you could consider options such as negotiating with your creditors or credit counseling. However, these avenues involve working with your creditors in hopes of lowering your balances, and in many cases, creditors may not feel willing to take such action.
It may help you feel more open to considering bankruptcy if you gain more information on this debt relief method. Once common myths and misconceptions are dispelled, you may realize that this route could prove immensely beneficial to your circumstances.