It is possible to avoid bankruptcy if you are willing to do some major financial planning. Your change in life requires a new attitude towards your way of living. To put it in plain everyday language, you can avoid bankruptcy if you make plans to do so and then stick with those plans. This will require you to stop spending money on frivolous stuff like a Starbucks Super Late with all the trimmings. Do you really need that, is one of your first questions to ask yourself? Taking control of your life is a good reason why you would want to take this approach to avoid bankruptcy.
Bankruptcy is a life changing event for many years. It will make it more difficult to do certain things for up to 10 years like getting the necessary credit to buy a house or car. Ask yourself this question, you have a brother or sister, they borrow money from you and refuse to pay you back. You look at them, they are working, going out with their friends and buying stuff for themselves but refusing to pay you back. Are you going to loan them money ever again. It does not take much to realize that you will never loan them money. This scenario is the same for bankruptcy, lenders look to see if you have ever had a bankruptcy. This is a pretty strong statement, but look at it from a lenders point of view.
Now, let's change the picture again, your brother and sister have a severe illness and almost die, you lend them money. They tell you they cannot pay you back now but later in the future when they get their lives together. You understand and are willing to wait. This is similar to a Loan Consolidation in which you agree to pay back your creditors due to extraordinary situation in your life. Family can be a little more understanding than a Credit Card Company, but if you try to work it out, they will listen and work with you.
To solve your problem first requires a desire to reduce your debt and a determination to do whatever it takes. It might mean that you will get a part-time job for a while in order to earn extra money to pay off debts. When you do this, it reverses the process and helps to reduce your debt. It will require sacrifices and belt tightening, but the rewards can far outweigh the work required to avoid bankruptcy. You might even have to downsize your home to something smaller temporarily, but just remember that things always get better in the long run.
Ask your this question, when you were 18 did you have anything? If you are like most of us, we were just starting out in life. If you make mistakes in life like accumulating too much debt, you can start out again and rebuild but with a new smarter way of dealing with your finances. I always tell people, to look at what they are buying and ask the question. Do you really need this and can I wait till later to buy it? This is how you downsize your spending habits and have long term financial security.
In conclusion, long term financial security requires a budget that you can live with. Stop buying things that are not really necessary such as a Starbucks Super Latte with all the trimmings. Taking on a second job will help reduce your debts in the long term. This will give you a sense of self worth you never knew before. A desire to change is all it takes on your part.