Before You File

Bankruptcy is a tool, not a first move. Exhaust these options first:

• Negotiate directly with creditors — many will accept a 40-60% settlement on unsecured debt rather than risk getting nothing if you file.
• Credit counseling through a nonprofit agency can restructure your payments with no court involvement.
• Count the real cost: court filing fees plus attorney fees, and a mark on your credit report for 7-10 years.
• Protect exempt assets: most states shield retirement accounts, a primary vehicle, essential household items, and a slice of home equity.