Can you avoid bankruptcy on your own?

To explore non bankruptcy alternatives, create a budget for your realistic, monthly expenditures for current living. Include mortgage and car payments, but exclude all other existing debt.

With the money you have available each month after paying your current living expenses, can you pay off your existing debts at the current interest rates in 3 years?

Forget minimum monthly payments: calculate what it really takes to pay off credit cards. Consider, too, the alternative uses of that money.

Can you reduce expenses, increase income, negotiate rates or sell assets to make that possible?

If not, bankruptcy may be a realistic opportunity for you. Filing bankruptcy is nothing to be ashamed about. The law is designed to give people a “fresh start”. Think about where you will be in 3 or 5 years, if you continue to struggle to stay ahead of your debt, let alone pay it off. Then think about where you will be in the same period of time if that debt were gone, now.

Only a skilled bankruptcy attorney can help you decide which alternative is best for your particular situation.