How to Avoid Bankruptcy

Bankruptcy is a final option for most people who find themselves in financial difficulty. In fact, one of the things that people who are in severe debt may ask themselves, is how to avoid bankruptcy. A car title loan or pawn from TitleMax® may be of some help. There’s often no credit check needed, which is important for anyone who is considering bankruptcy. Obtaining one of our auto title loans is also fast and convenient. But what if we aren’t enough to help you avoid bankruptcy? Fortunately, in addition to a loan from TitleMax®, there are other legal and smart ways to avoid bankruptcy.

Debt Counseling

One potential solution to the question of how to avoid bankruptcy is to seek out debt counseling. These services can help people in several ways, such as providing advice on creating a budget and negotiating with creditors. Successful negotiations may result in lower interest rates, the dropping of late fees, or even an extension of terms. When seeking out the help of a debt counselor, people must use caution to avoid being caught up in a scam from predatory services. Before making an appointment for this type of service, ask friends or family to recommend a service that they may be familiar with or have used before. People can also check with agencies such as the Association of Independent Consumer Credit Counseling Agencies or the National Foundation for Credit Counseling to ensure that a company is legitimate. Any service that one decides to work with should also be accredited, have reasonably low fees, and provide service of the highest standard. A quick check with the Better Business Bureau can reveal any serious history of complaints as well.

Look Toward Your Home for Help

Homeowners may find that their home is pivotal in helping them to avoid bankruptcy. To do this, look into restructuring your current mortgage. This can be beneficial, as it can help you save money that can be put toward your other debt. One way to do that is to refinance the loan with a lower interest rate, or by reconfiguring the current loan with a new payment plan.

Increase Your Income

When it comes to how to prevent bankruptcy, increasing one’s income is an obvious option that requires hard work. This may involve taking a second job for additional income or working extra hours at your current job for overtime pay, if possible. Other options include renting out a room or a portion of one’s home for a short period. Starting a small home-based business that doesn’t require a lot in terms of start-up costs, or even selling personal property, can also earn extra income and help save you from bankruptcy.

Contact Your Creditors

This likely seems like the most frightening of options for many when it comes to avoiding bankruptcy. It is natural to expect resistance from creditors when advising them that you are experiencing financial problems, but often, creditors are willing to work with consumers, versus being left with unpaid debt. When calling creditors, people should be honest about what they can and cannot pay on a monthly basis. In turn, lenders may work with you by waiving certain fees or lowering the interest rate. This will depend on various factors, including your payment history and the policies of the company.

Whether you are faced with the fear of filing for bankruptcy or you need money for some other equally important reason, we at TitleMax® can help. We don’t just offer our customers convenient online service; we offer excellent service and the experience that comes from being one of the country’s largest title lending companies. If you have any questions about any of the services that we offer or about our service in general, review our frequently asked questions, where you’ll find a wealth of answers to our most common questions. Still have questions? We are available to chat with you live during our business hours, or you can contact us by calling our support team or to ask us any questions you might have.

  • * Maximum loan amount in Illinois is $4,000. Maximum loan amount in Mississippi is $2,500. Maximum loan amount in Tennessee is $6,500, assuming customer qualifies and accepts both the Pledge and Line of Credit. Minimum loan amount in California is $2,600.
  • ** Car title loans may require a credit check in California. Motorcycle title loan and pawn approval requires satisfaction of all loan eligibility requirements including a vehicle evaluation and a credit check.
  • *** To be approved for a title loan or pawn, you must be at least 18 years of age (19 in Alabama). Account approval requires satisfaction of all eligibility requirements, including a possible credit inquiry, and a motor vehicle appraisal. Certain other terms and conditions apply.
  • † Proof of income is required in Illinois, Nevada, some Texas locations, and California. In California you are also required to provide proof of residency, and a valid vehicle registration to obtain a loan.
  • ‡ Signature and personal loans are offered by an affiliate of TitleMax® and are currently only available in Florida. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.
  • § Refinancing of a competitor’s title loan is not available in Mississippi or Virginia. In Illinois, you are required to have reduced your original principal balance by 20% before refinancing. TitleMax®, TitleBucks®, and InstaLoan®, are not considered competitors. Please see a store associate for details.
  • - TitleMax of Virginia, Inc. d/b/a TitleMax® is licensed by the Virginia State Corporation Commission, license number VTL-11.
  • - In Texas, TitleMax® acts as a Credit Services Organization to assist customers in obtaining a loan through an unaffiliated third party lender. Please see store associate for details. Please see Texas Schedule of All Fees.
  • - In GA, TitleMax® offers Title Pawns.
  • - In CA, Loans are made by TitleMax of California, Inc., California Finance Lenders Law License No. 603K014.
  • - New Mexico Consumers: please see important New Mexico Consumer Information and Disclosures.