The popular layman's advice in Arkansas and all other states is to consider bankruptcy only as a last resort. However, a lot of emotional energy and money can be saved by considering bankruptcy as the first option, according to some debt relief experts. To clarify, it is wise to look at bankruptcy first as soon as it has been determined that the debtor's income is far too minimal to make even modest monthly payments toward the total debt owed.
Math is a reliable adviser: if there is no money left after paying the monthly mortgage, car payments, food, day care, gasoline, repairs, clothing, laundry, a child's mounting expenses, several different kinds of insurance, medical expenses, and miscellaneous maintenance, then it is time to stop and think. It defies logic to imagine that the debt can be paid when in fact the math shows no funds left each month to fund a payment plan. In such cases, even a reduction in food intake and otherwise living a Spartan existence will not work when the debt owed far exceeds one's income capabilities.
Many sincere people appear to spend a great deal of time trying to find the right debt relief company. They are told that the company will contact all creditors, get them all to stop collections, accept pennies on the dollar, and then the company will administer the payment plan until the client is debt-free. However, consumers may find that they will save a great deal of worry and time and get closer to their goal a lot quicker by looking at bankruptcy as their first option and not their last.
Creditors and debt consolidation companies in Arkansas and elsewhere have excelled at swaying public opinion to think that bankruptcy is the evil to be avoided at any cost. They warn of credit being ruined forever, and yet, time after time, that proves to be untrue. A consultation with a consumer bankruptcy attorney will usually provide the most accurate information necessary to help one decide on one's options, and the quicker it is done, the quicker the goal of true debt relief may be realized.
Source: Huffington Post, "Is There a Debt Solution Company You Would Recommend?", Steve Rhode, Dec. 30, 2015