What to think about before filing for bankruptcy | Reed Law Firm, P.A.

What to think about before filing for bankruptcy

On Behalf of | Jul 12, 2019 | Credit Card Debt |

Dealing with credit card debts can be an extremely painful experience, and you may feel that the only way you can escape the constant pressure of debt is by filing for bankruptcy. While bankruptcy can be a great way to help you gain a fresh financial start, there are other options that you should explore before committing to this route.

Credit card debts can be particularly difficult to deal with because of the high interest rates that you will be subject to. However, certain debt relief strategies and negotiation techniques can make the process easier. The following are things you should consider doing before filing for bankruptcy due to credit card debts.

Try negotiating with your credit card companies

Credit card companies would rather see you pay off your debts in a traditional way than file for bankruptcy. Therefore, if you sit with them and tell them that you are considering bankruptcy, you may be able to use this as leverage to negotiate. They may agree to lower your interest rates so that you can pay off what is owed more easily.

Draft a repayment plan

You should try drafting a repayment plan in full so that you can consider whether repaying your debts traditionally could be a realistic option given your income. If you find that your income is not sufficient, you may be able to file for Chapter 7 bankruptcy.

Chapter 7 bankruptcy can be a great option for those struggling with credit card debts. This is because it is a rapid liquidation process that helps debtors to have a significant portion of their debts discharged.