4 alternatives to consider before filing for bankruptcy

If you're overwhelmed by debt, bankruptcy can seem like the only way out. But that relief comes with lasting consequences. It's a major legal step that can remain on your credit report for up to seven years with Chapter 13, or up to 10 years with Chapter 7. Before you decide to file, it's worth exploring other paths. Here are four alternatives to consider. 4 alternatives to bankruptcy Struggling to pay off debt? Consider enlisting the help of a debt relief company Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. According to National Debt Relief, clients who complete its debt settlement plan can reduce their enrolled debt by an average of 20% to 25%, after fees. Negotiate directly with your creditors Negotiating your debt is actually more doable than most people realize, and it's free. If you're behind on payments or think you might fall behind soon, calling your creditors directly to explain your situation can open the door to hardship programs , temporary forbearance, reduced interest rates or waived fees. Credit card issuers, medical providers and utility companies often have assistance programs that aren't widely advertised. When you call, be sure to ask to speak with the hardship or customer assistance department specifically and be upfront about your situation, whether it's a job loss, medical emergency or another financial setback. …