Although bankruptcy is something that sometimes needs to happen, you’ll find that there are more ways to avoid it than you might think. As in a divorce, where couples should try to work things out if at all possible, you’ll find that bankruptcy should be something that you approach with care and with a lot of investigation into other options. Bankruptcy is never an easy way out, so take some time to review what other options might have, especially in light of some of the new bankruptcy laws.

Doing Nothing May be Your Best Answer

Through the years many people have realized the importance of taking action when the chips are down. You may feel as though you have to do something in order to make progress, but that’s not always the case. In fact, when it comes to bankruptcy sometimes the best thing to do is nothing at all. See, creditors have to spend money on attorney fees and take you to court if they want to see any money back. It could cost them thousands of dollars and if they notice your balance is less, they probably won’t sue you.

No Money to Give

Even if you wanted to pay off your debt, is it possible that you just can’t? The truth is that any good business person knows that you cannot squeeze blood from a stone and if they are smart, they won’t even try. Consider a situation where you owe three different creditors 500 dollars, 1,500 dollars, and 4,500 dollars. The first creditor is most likely not going to take you to court for 500 dollars because that would barely cover the legal fees that they need to pay.

Plus you have to remember that things like food money, clothing, furnishings, and social security is out of their reach. Even unemployment, public assistance and seventy-five percent of your wages cannot be touched. It’s just another reason why doing nothing at all can still end up getting you a write off from your creditors. Even creditors know that they have to stop attempting once you’ve sent a letter telling them you have no intention of paying it.

Remember that as annoying as phone calls and dire letters are, a debt collection agency needs to stop attempting to collect a debt once you inform them in writing that you have no intention of paying it. One thing that you might wish to try is to deny knowledge of the debt whenever you speak with the creditor, because acknowledging that the debt exists restarts the statute of limitations that will legally erase your debt.

Try Negotiating

Now that you know this information, you can generally see why creditors will want to settle their debts outside of court. When you are ready to do something about your financial situation, it is time to take a look at your work and to really figure out whether it is time to call a bankruptcy lawyer.

Then of course there is always the chance you go and talk with a bankruptcy lawyer. Getting the lay of the land before taking the leap is extremely important. Let them tell you about what you can expect and the path it will lead you on for the next decade. It’s a long journey and many individuals and families don’t realize it in the beginning. Heck, they may even help you start a debt settlement plan for the upcoming months.

Any type of debt settlement or credit counseling program is a great place to start. It will allow you to get the help you need and learn everything there is to know about bankruptcy and how it will affect your future. However, you do need a reputable company and not some fly by night person on the other end of a computer. We recommend using Nationwide Debt Solutions for all your needs. Hopefully with a little help you can save yourself from bankruptcy.

Daniel R. Michaelson has over 20 years experience in the debt consolidation field, and is a well respected authority on credit card debt consolidation, and credit counseling.