Often, it's a far better prospect to avoid bankruptcy if possible. Some people feel as if bankruptcy represents the only answer to their financial problems, but it's possible to get beyond those problems on your own. At the very least, it's worth trying a few of these things to see if they can help.  

1. Do Some Research On the Subject

There are many, many resources out there for people just like you. There are whole websites dedicated to avoiding bankruptcy. You need to learn when bankruptcy is the best solution, and when it isn't. There are experts, bankruptcy attorneys, and other people out there willing to help you figure it all out. Financial and legal websites are a good place to start.

2. Speak to Your Creditors

You know who absolutely doesn't want you to declare bankruptcy? Your creditors, that's who. They would rather you pay them almost anything than to have the debt discharged through a bankruptcy. Because of that, it's possible for you to call and negotiate with them.

A creditor who believes bankruptcy is a possibility will often make concessions. You can make offers to them as well. You might just walk away with a reduced amount, or dropped fees and interest. It doesn't actually hurt to try. Don't dodge your debt collectors, engage them instead.

3. Make More Money, Spend Less Money

Yes, making more money is one of those things easier said than done. However, most people can if they put their minds to it. Here are a few ways you can earn extra cash that you can put towards your debt.

Seek extra work – Whether it's a second job, third one, a temporary one, or off the books.

Sell property – Old stuff, unneeded stuff, old collections of jewelry or comic books, whatever you can.

You can also seek out some more creative ways of making money. For example, you can seek out free items in classifieds, gather them up, and then sell them for a profit. Keep your eyes open for opportunities to generate cash.

In addition to making more money, you should focus on spending less. If you dig deep and do some soul searching, you will likely discover there are many things you can do without. For example,

• Cigarettes
• Eating out
• Cable television
• Gifts every holiday

You have to become frugal and just a little miserly. Keep in mind these aren't permanent sacrifices; they're just a means to an end. Once you reach that end, you may just realize you don't need to pick any old habits back up anyway. Look for ways to cut spending in every aspect of your life.

5. Speak to a Bankruptcy Attorney

A bankruptcy attorney doesn't just exist to help you file Chapter 7 or 13 bankruptcy. They can also provide you with consultation and professional legal advice. In fact, a bankruptcy attorney can let you know if bankruptcy is right for your current situation. If it isn't, they can give you excellent advice on what steps you should take instead of filing.

Bankruptcy isn't an ideal solution for everybody. If you would like to avoid it altogether, try following some or all of these suggestions. In addition, speak to a professional (such as Wiesner & Frackowiak, LC) about whether bankruptcy is even in your best interests.