If you're struggling to stay afloat financially, there's a good chance that the idea of filing for chapter 7 bankruptcy has crossed your mind a time or two. And while chapter 7 bankruptcy can be a viable option for those in serious debt and financial trouble, it should also be seen as a last resort. Before you move forward with bankruptcy proceedings, then, make sure you've thoroughly explored these three alternatives that could provide you with the debt relief you need.
As many as 1 in every 3 people have a debt that is in collections. Once a debt reaches this point, a significant amount of time has had to pass with no payment on the account. This statistic alone shows that debt is a serious problem for many people. Unfortunately, there are a lot of misconceptions concerning debt that only perpetuate this problem. Learning to identify some of these misconceptions can keep you out of debt and on a path to healthier finances.
Rebuilding your finances after a bankruptcy can be difficult if you don't have any financial planning skills. Here is a simple step-by-step guide on how to start over again after you have filed for bankruptcy.
Start Living On Cash
One of the easiest ways to budget your monthly finances is to start using cash only to make purchases. This will allow you to see exactly where your money is being spent and if you don't have the cash to pay for something you can't buy it.
Bankruptcy is a financial tactic that can eliminate most of your debt and leave you with a clean slate. According to Bankruptcy Action, more than 900,000 Americans filed for bankruptcy in 2014. If you find yourself with a mountain of bills and no cash to pay them, you may be a candidate for bankruptcy.
Before you elect to declare bankruptcy, make sure you educate yourself. Although it may solve some of your problems, it cannot solve all of them.
If you're facing difficult financial times, filing for bankruptcy may be your best option. Qualifying for this legal status can certainly take a load off your mind when it comes to debt you simply can't pay. It's important for your overall success to know specific details about the filing process and where you should go to file. Getting any of your questions answered about the location and details of the filing process can be extremely helpful to you in this situation.