Bankruptcy can provide a fresh start, but it’s right for all people. Take into consideration the severity of your debt as well as your financial goals in the near future prior to filing. Alternative options can often offer more manageable results and allow you to keep your credit intact.

Negotiating with creditors and reducing your expenses are excellent strategies to avoid bankruptcy. This method should be taken prior to filing for bankruptcy and requires a lot of careful budgeting and financial planning. If you can lower your expenses or negotiate a less interest rate and save money, that can be used to pay down your debt.

Selling assets is a way to lower your debt burden. This can help you pay off your debts and may help you avoid having to make an application for Chapter 7 bankruptcy. The most efficient way to proceed before selling your assets is to speak with a bankruptcy attorney and make sure you’re eligible for this kind of relief.

In bankruptcy the court will wipe out or “discharge” the majority of unsecured debt, including credit card payments, medical bills, overdue utility bills, and personal loans. Certain debts will be able to survive bankruptcy, including student loans, recent taxes, alimony and child support. Before filing for bankruptcy, it’s a good idea to erase non-priority debts and then use any savings on more expensive debts that cannot be wiped out by bankruptcy.