Talk to Your Creditors

Those in debt should detail their situation to their lenders and ask for payment reductions and/or extensions. In the case of a lender not agreeing, and possibly mentioning wage garnishment, the debtor should inform the lender that continued harassment and rising bills make you able to avoid bankruptcy. Obviously, lenders don’t acknowledge bankruptcy as an option so therefore mentioning Chapter 7 can be an effective note while negotiating with lenders. When a lender is faced with the option of bankruptcy or reducing payments, most lenders will be eager to take the reduced payment or settlement. However, it is important to note that this tactic does not work with any secured loans. These types of leans always have the option of securing payment with home foreclosure or repossession