Quite often a single event (accident, job loss, hospitalization) can result in being temporarily unable to meet your monthly bills. Unfortunately, being past due on an account can lead to "penalty rates" in addition to late fees and over the limit fees which add up quickly and can cause a temporary problem to become unmanageable financial situation. 

The first step in a situation like this is to contact your creditors. Explain the situation. When dealing with credit cards ask if they can lower interest rates or waive past due or over limit fees. If the customer service rep you speak to can not help ask that they escalate the call to the collections department or a supervisor and ask specifically if they have a "hardship program". When dealing with loans ask if  there is a possibility of skipping one or more payments (Do NOT just skip a payment without making arrangements with the lender) or for making  interest only payments for one or more months.

In the event you are unable to obtain sufficient concessions from your lenders but still wish to avoid bankruptcy, we recommend the following;

• Contact us or another attorney regarding your financial situation.
• Let the attorney know you want to avoid bankruptcy.
• Provide complete and accurate financial information for their review.
• Ask if they feel you are a candidate for a credit counseling program.