Talk to Creditors

• Although you may feel isolated by your current financial situation, you are not alone. Do not be afraid to talk to creditors because they talk to people in your situation everyday. When speaking with a creditor, explain your financial situation, when it began and steps you are taking to resolve the situation. Some banks may be willing to defer payments temporarily until you get back on your feet.
  
  

Settle and Ask for Help

• When financial hardship lasts a long time, consider asking creditors to settle. Settling means agreeing to pay a small percentage of the total amount you owe as the final amount owed. To settle with a creditor, seek the assistance of a debt negotiation company or negotiate directly with creditors yourself. Once you settle on final amounts, ask trusted friends and family for loans or grants to pay off the debt.
  
  

File for Bankruptcy

• Bankruptcy, considered a last resort, dissolves your debt permanently. To declare bankruptcy, hire a lawyer or represent yourself, legally referred to as "pro se." Prebankruptcy courses and advice can be found online at Nolo and My Bankruptcy Now. Bankruptcy forms can be downloaded from the United States Courts official website.
  
  

Time Frame

• Bankruptcy can take up to three months from start to finish. As of 2010, the bankruptcy filing fee is $300 and can be waived in certain hardship situations.