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With debt concerns more prominent than ever in society, many people are finding themselves faced with having to snowball- with more debt then they may have thought possible. When debts are mounting, the absolute worse thing you can do is ignore the situation. By avoiding your financial responsibilities, you are only adding to your own problems. The only solution to your debt problems is to tackle them full on and start paying them down (and off!) as soon as possible. Paying off debt for good takes a serious commitment to allocating your monies towards debts. It will not always be an easy road but it will certainly be one worth traveling, as the end result is financial freedom.

So, how can you pay off those debts? Here is a list of ways to start paying down your debts fast:

Stop Spending!

Once you have made a commitment to paying down your debts, you will have to stop spending. Do not continue to buy anything you can not pay cash to get. Adding additional charges to an already high credit card balance will not help you pay off your debts. Create a reasonable budget that incorporates the funds you need to put as much money as possible towards debts and then stick to that budget at all times. Savings may even have to be put on hold while you work towards paying down your debts.

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Bankruptcy is a serious matter that can affect your credit rating for up to ten years. There are many factors that come into play when a consumer is making the decision to file for bankruptcy. Use these signs to recognize when it is time to file for bankruptcy:

1. You are unable to make routine minimum payments required for credit cards and loans. This is a sign that you are in severe financial distress and should not be ignored.
2. When you examine your expenses it is determined that you have been spending much more than you earn on a regular basis. This means that you have been accumulating debt each month. Each month the debt gains interest – making the debt more expensive as you add on to it. This is a vicious cycle and it’s called "financial suicide". This type of spending has to come to an end or your credit score is going to die miserably.
3. You are over your limit or at the limit on your credit cards. To maintain a healthy financial situation, it is important to remain under thirty percent of the credit limit on your credit cards and loans. If you are teetering at the limit, unable to pay down the debt this can lead to trouble.
4. You are unable to pay each bill every month and therefore skip bills for one to two months at a time and are facing notices for collection on a regular basis.
5. You are not making enough money. Are you making enough money to cover your expenses each month while contributing to a savings account or an emergency fund? This can lead to financial distress and bankruptcy.
6. Expenses can bring panic – there are many unexpected expenses that can occur such as vehicle repairs which can occur and are mostly covered by an emergency fund. For those consumers facing bankruptcy, these expenses can cause upheaval in the finances along with high levels of stress. With credit cards at the limit and no savings account, an accident or repair can seem like a nightmare.
7. You receive countless phone calls from credit agencies that are seeking bills for collection. When creditors are calling, it can be detrimental to the credit report – as collections are the worst thing that your credit report can face. If you are unable to afford these payments then it may be time to consider bankruptcy.
8. You are afraid to speak to your partner about money issues or avoid the topics altogether. This can be a sign of financial disarray and should not be ignored. Ignoring the problem can only make it worse as time passes.
9. You have no idea about all the accounts on your credit report. You are unsure about which debts are paid – or even how much you owe to creditors.
10. You have thought about bankruptcy or were considering filing with a bankruptcy attorney. When you have had these thoughts, chances are that meeting with a bankruptcy attorney is the next logical step.

Use the above as guidelines for considering filing for bankruptcy. If you are experiencing one of the signs above then it doesn’t necessarily mean you are in need of bankruptcy. You may want to first consult a financial guru before filing, but if you are experiencing two or more of the signs above then you are more likely to be a perfect candidate for filing bankruptcy. At this point you should consult a bankruptcy attorney to understand your options and what bankruptcy can do for you. Learn how to choose your bankruptcy attorney.

Michael David is an expert writer with years of experience writing and producing quality content. Before filing for bankruptcy you should read Dave Ramsey’s Total Money Makeover, it will change your life and help you avoid bankruptcy altogether.

If you are divorced and are filing for bankruptcy claim, you might be thinking whether you will be able to wipe out your obligation of paying community debts. In normal circumstances, it is quite likely that filing the court petition regarding the same will free you from all community debts that are dischargeable. However, in some cases, you may be liable to pay the same even after you have been declared as belly-up under chapter 7 bankruptcy. Therefore, it is important for you to be aware of certain kinds of debts that may or may not be discharged. Always remember, if granted, bankruptcy is going to be there in your financial card for the next 10 years at the very least. Therefore, if you plan everything beforehand, things would definitely be much easier for you.

Filing Petition When A Dissolution Action Is Pending

However, in such cases, you are recommended to discuss the matter with your family law attorney. The attorney is an expert person and they know about the intricacies involved in the laws associated with bankruptcy claim. They will get you the real picture based on your specific circumstances and lots of other factors associated with the same. There can be several implications of filing bankruptcy during the period when a dissolution action, such as a divorce case etc, is pending. Your family law attorney will help you understand those implications and take the right step based on that. What is more, it is also important for you to note that in case the court discharges you from community debts, your spouse will become liable to pay off the entire balance on those debts. In other words, if you file your petition at a time when a dissolution action is pending and community debts are considered as dischargeable debts, the liability will be shifted on to your spouse.

Debts That Can Not Be Discharged In Any Case

Insolvency under this chapter is usually considered as freedom from all kinds of debts. However, there are certain kinds of them that cannot be discharged in any case even after you have won the bankruptcy claim under chapter 7. It depends upon the judgment of the court and your specific circumstances regarding which debts are dischargeable and which ones are not. In normal circumstances, the bankruptcy court considers the following debts as non-dischargeable.

# Penalties and forfeitures,
# Criminal fines,
# Student loans,
# Non-dischargeable debts from a prior bankruptcy,
# Liability for injury or death from driving while intoxicated,
# Debts caused by the malicious or willful misconduct by the debtor,
# Liability associated with spousal and child support, and
# Taxes (except in certain cases).

However, the debtors sometimes are not able to get even the dischargeable debts removed because the creditors have filed an appeal against the same. Still, in usual circumstances, once the debtors win the bankruptcy claim, and the equity interest in the property is exempt, they can retain the property by redemption or reaffirmation.

Filing for bankruptcy claim might be easy, but it is certainly not a simple task to live with the tag of being insolvent for 10 long years. Therefore, if you are filing under chapter 7 bankruptcy, make sure that you are well aware of the ins and outs associated with the same. For example, you must know the outcomes of filing bankruptcy when a dissolution action is pounding.

By Saurabh K Jain