First, compare your annual income to the total amount of your debts. If your debts are less than fifty percent of your annual income, you should not declare bankruptcy. Sure, you may have to sacrifice some luxuries and it may take you three or four years to completely pay off your debt, but you will have much improved credit and won't have to endure the 7-year negative effects of bankruptcy.
Second, do you own and have equity in your home? If you own your property and have equity, you have the ability to refinance and pay off your debts. If you file for bankruptcy, the court will require you to use your equity to pay off your creditors, so you might as well use it for yourself now. In addition, you can negotiate with your mortgage company to resolve some of your debts for less than you owe.
Do you own your vehicles outright? If you own the title to your automobile or automobiles, you can obtain a title loan or sell them to pay off your obligations. The bankruptcy court will allow your creditors to seize or place liens on your vehicles regardless, so you might as well use this leverage to your advantage before it works against you.
Before ever contemplating a decision such as filing for bankruptcy, you should consult a financial advisor. This is a significant and life-altering decision, and yes, you should get out of debt, but declaring bankruptcy is not always the solution.""
" - https://www.affordablecebu.com/
