Bankruptcy is not for the faint of heart. It is arguably one of the hardest decisions anyone wallowing in debt will make. Choosing to file for Chapter 13 or 7 bankruptcy does not necessarily mean you are financially irresponsible. Many people fall on hard financial times due to health and medical issues, loss of jobs, pay cuts and more.
If you are having a hard time getting your creditors to see reason about your circumstances, you may find yourself contemplating which chapter of bankruptcy is for you. Before you choose Chapter 7 over 13, keep in mind the following pointers to improve your situation.
Is your pride keeping you from financial relief?
Pride can be a scary thing, especially if it keeps you from seeking the help you need to get your finances in order. No one wants to admit when they are broke or unable to make even minimum payments on their credit cards. It is a frightening reality for many households in the Louisiana area and across the country. Most creditors are willing to work with borrowers to help bring their accounts current. Unfortunately, many people do not know that or feel shame about inquiring. If you find yourself avoiding phone calls and collections notices, it may be time for you to speak up and hear what they have to say. If your creditor is unable to agree to the amount you can afford to pay each month, then do yourself a favor and consider the alternatives.
Have you exhausted all bankruptcy alternatives?
Debt consolidation and personal loans have their pros and cons. However, if your finances are in such dire straits to the point of you having terrible credit, you may not qualify for loans with favorable terms. Some companies prey on those in over their head financially. You must exercise due diligence to avoid them. Also, if you have already exhausted those options, it is time for you to gather up your courage and get professional help so you can take the plunge.
Do not let the stigma associated with bankruptcy keep you from doing what is right for you and your family. Failure to take proper action to pay off debt can come back and compromise you where it really hurts, i.e., wage and bank account garnishment, repossession of vehicles and losing your home(s) to foreclosure.