Is Bankruptcy the Best Option?

Bankruptcy is usually a last resort for people who are overwhelmed with debt and hassled by creditors on a daily basis. Bankruptcy might negatively impact your credit score, but it can also help stabilize your finances and get you back on your feet. In many cases, bankruptcy can be a fresh start. If you have many instances of repossessions or foreclosures on your credit report, it’s possible for your credit score to actually become higher after bankruptcy. Options are available for families and individuals looking for a way to obtain financial freedom. There are two types of bankruptcy. Chapter 7 bankruptcy is typically known as liquidation bankruptcy. This is when any non-exempt assets are sold in order to pay creditors. Chapter 11 (or “rehabilitation” bankruptcy) is when debts are reorganized and payments and interest rates are lowered to amounts that are more manageable.

Bankruptcy ccould be the best option when you want to repay most of your debts and re-establish your credit. It could stop foreclosure, repossession, and wage garnishment. In many cases, bankruptcy offers the best way for a family or person to start over and build their credit and finances responsibly.

Is Bankruptcy Right For Me?

Many people with heavy debt burdens may be wondering, “Is bankruptcy right for me?” Bankruptcy could be the best option if your low credit score and debt impacts your life in an extremely negative way. For many people, this means that getting a job and keeping a home, car, or insurance is almost impossible. If you would like to keep up with payments but have fallen behind due to unforeseen financial hardships, bankruptcy might be the best choice for you.

Before filing for bankruptcy, make sure you have explored all other options. It’s important to go to counseling before choosing any form of debt relief, and it’s required for those interested in bankruptcy. Options usually discussed by a credit counselor are debt consolidation, settlement, and customized debt management plans.

If you have excessive medical bills or credit card debt, Chapter 7 bankruptcy could help dissolve it. It could also eliminate aggressive calls from creditors. And on a positive note, if you already have a low credit score, bankruptcy won’t make much of an impact.

Other Options Besides Bankruptcy

There are many options other than bankruptcy available for you to explore. In many cases, you might be able to consolidate your debt through a home equity loan or second mortgage. If you have any chance to pay down your debt without taking the drastic step toward bankruptcy, you should do it. Consolidation might not work for everyone, but many people find their debts are much more manageable combined into a smaller payment with a lower interest rate. Debt settlement is a similar option that requires you to work with your creditors to negotiate a lower payment, interest rate, or payment plan. In some cases, your current payments might be waived in exchange for larger payments at a later date. Sometimes, creditors will allow you to catch up on current payments by paying the older payments in the future.

Selling your property is another way to avoid bankruptcy. Since filing Chapter 7 involves liquidating your assets, you could completely avoid it by selling any extra valuables on your own. A second car or collection of antiques could be a great source of extra income. Many people turn to eBay, Craigslist, or pawn shops to sell their belongings. You could also refinance your mortgage with a lower interest rate: This often results in extra income, which can be put toward paying down your debt.

How TitleMax® Can Help

TitleMax® has been one of the largest and most trusted auto title lending companies in the country since 1998. We now feature more than 1,000 stores across 16 states. We specialize in car title loans and work to provide excellent customer service at affordable rates! At TitleMax®, we understand that life is full of unexpected expenses. Many people cannot qualify for traditional loans and need money fast. Our online approval is fast and easy, so you’ll get your cash right away. If you have any questions or concerns about our services, you can contact us online, by phone, or by via .

  • * 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.