A first and basic option is to contact your creditors and attempt to work out a payment plan of some sort. Begin by explaining your situation and why you cannot make your payments and suggest a new arrangement . Often your creditors will be willing to co-operate.
Another option is a debt consolidation loan. With a debt consolidation loan, you will seek a loan to pay off all your creditors and then you will just be left with the debt consolidation loan payment. (see California Debt Consolidation Loans)
Another option to filing a California personal bankruptcy case is a credit counseling plan. Your creditors may be willing to lower your interest rates and accept reduced payments if you enter a debt repayment plan. Generally, in these plans, you deposit money each month with the credit counseling service. Your deposits are used to pay your creditors according to a payment schedule developed by the counselor. As part of the repayment plan, you may have to agree not to apply for, or use, any additional credit while you’re participating in the program. (see California Consumer Credit Counseling)
