Lying awake at night, thinking about where the money is going to come from to pay the stack of mounting bills is unnerving and all-consuming. Being in debt quickly becomes so overwhelming that people often make choices that make the problem worse, instead of better.

If you are dealing with a financial crisis at home, talk with a bankruptcy lawyer about next steps. There are many alternatives to bankruptcy such as consolidation or debt negotiation; talking to a lawyer doesn’t mean you have to file for bankruptcy protection. However, you may find out that it is your best option.

Here’s what not to do when you are drowning in debt:

• You’ve been saving for retirement all of your life and now an accident or job loss has put you at risk of losing your home. So, you look toward that 401K or other retirement nest egg. It’s an option, but not a great one. Many people in debt empty retirement accounts trying to get back into the black. Experts say, however, that unless you have enough saved to pay off all of your debt and still retire with money in the bank, this is not a workable solution.
• Don’t take out more debt to repay existing debt – just to avoid bankruptcy. Think about it. You are adding to the problem. Taking out another credit card that you cannot pay off is only going to heap more stress on your shoulders. In short order, you’ll just have one more unpayable debt.

Finally, you may want to hide your head under the covers and just ignore the debt. Who knows? Maybe you will win the lottery or an old long lost aunt will die and leave you a huge inheritance.  Neither of those scenarios is likely. The only thing that ignoring debt will do is create a bigger monster than you already have. Not paying the mortgage or rent will leave you in a serious bind about where to live. Charging on credit cards can only last so long; once you have no more charging power you likely won’t be able to even get a loan or more credit.

You can’t ignore serious debt. You have to face it head on. Bankruptcy isn’t the end of the world. In fact, many people see it as a fresh start.

We invite you to call Joel R. Spivack, Esq. for sound legal advice about debt management. He has helped countless families in Cherry Hill, NJ and the surrounding communities deal with overwhelming debt. He can help you, too. Contact him today for a free consultation.