What should I try before filing for bankruptcy?

Before filing for bankruptcy, you should consider proven strategies to generate income and cut expenses. These include starting a side hustle, renting out space or items, selling unused belongings, creating a strict budget, minimizing unnecessary expenses, negotiating lower interest rates, and refinancing or consolidating debt. Exhausting these options may give you peace of mind that you did everything possible prior to seeking bankruptcy relief.[1]

How can I increase my income to avoid bankruptcy?

To increase income, consider side gigs such as rideshare driving, freelance work, or part-time jobs. Renting a room or storage space, exploring passive income through investments, and selling unwanted items online are additional practical ways to boost your earnings.[1]

What are effective expense-cutting strategies before filing for bankruptcy?

Cutting expenses might include creating a detailed budget, cooking at home, switching from cable to streaming, negotiating with service providers, downsizing your home or car, canceling unused memberships, shopping for better insurance rates, and tackling easy do-it-yourself home repairs.[1]

When is bankruptcy the best option?

Bankruptcy may be the best choice if, after trying multiple income generation and expense reduction tactics, you still cannot manage your debt. At that stage, consulting an experienced attorney like Ted Machi & Associates, P.C. can help you decide on the best path for your circumstances and guide you through the bankruptcy process.[1]

Give This A Go Before You File For Bankruptcy! - Machi and Associates, P.C.

Give This A Go Before You File For Bankruptcy!

You might have heard the expression, “Desperate times call for desperate measures.” If your financial situation is on the brink of bankruptcy, then these are certainly desperate times—or at least, you might think they are.

You might be looking at your situation and thinking that there is no way to avoid bankruptcy—there's not enough money to pay the bills, and creditors are calling day and night, threatening to take action when they don’t receive payment. You might think that bankruptcy is your best choice for getting your debt under control, and you might be right. However, before pursuing bankruptcy, it’s essential to know there are alternatives and steps you should try first. Machi & Associates, P.C. recommends exhausting every reasonable option before making the important decision to file.

The Importance of Exploring Alternatives to Bankruptcy in Texas

Bankruptcy is a significant legal and financial step that cannot be reversed, and its impact on your credit can last for up to a decade. Before entering bankruptcy, seek advice and information about other methods for regaining financial stability. At Machi & Associates, P.C., our team has helped thousands of North Texas individuals and families explore options like credit counseling, debt management, reducing expenditures, selling non-essential assets, and negotiating directly with creditors—often helping clients avoid bankruptcy entirely. For those where filing is the best step, we’re always available as your reliable advocate and resource. Learn more about Texas bankruptcy laws and your alternatives here.

Tried & True Practical Strategies for Getting Out Of Debt

Any debt rescue plan—from financial counseling to court-ordered debt discharge—relies on two sides of the equation: how much you make (income) and how much you spend (expenses). Here are proven strategies that the team at Machi & Associates, P.C. encourages all clients to try before making the final decision to file for bankruptcy:

Ways To Increase Your Income Before Filing for Bankruptcy

Side Hustles & Part-Time Jobs: Whether you take on work in your field or explore delivery, rideshare, music lessons, childcare, or handyman work, every extra dollar you bring in can help you chip away at your debt.
Freelance Your Skills: Put your unique skills to work—offer tutoring, design services, yard work, virtual assistance, or other freelance services. Platforms and local groups make it easier than ever to connect with clients.
Rent Out Extra Space: If you own your home and have an extra bedroom, consider renting it to a tenant, student, or even short-term guests. If you have garage or storage space, lease it for parking or storage.
Explore Passive Income: Generating income from investments or real estate might take time, but dividends, renting out land, or even small-scale investing in local properties can add another income stream.
Sell Unnecessary Assets: Unused exercise equipment, furniture, electronics, or collectibles can generate immediate cash and also declutter your home.

Cutting Costs: Proven Ways To Lower Spending and Minimize Debt Before Bankruptcy

Track Every Dollar: Use a budget app or spreadsheet to review where your money really goes. Tiny subscriptions, impulse purchases, or unused memberships can add up to hundreds of dollars a month.
Cook at Home & Meal Plan: Avoiding restaurants and making food at home can cut food costs in half and improve your health. Shop at warehouse or discount grocers when possible.
Cut the Cord: Swap cable for streaming, free public TV, or even eliminate TV altogether for a time to save.
Refinance or Consolidate Debt: If you qualify, consolidating debts can lower your monthly payment or interest rates, making your debt easier to manage.
Downsize: Move to a smaller home or apartment. Sell or swap your vehicle for a less expensive one, or rely on public transportation or carpooling if possible.
Renegotiate Insurance & Loan Terms: Shopping around for insurance, adjusting your coverage, or refinancing a car or home loan could result in substantial savings.
DIY Repairs and Projects: Learn to handle basic home repairs, appliance maintenance, or car tune-ups with the help of online tutorials. You’ll save on labor and might even gain a marketable skill.
Cancel Underused Subscriptions: Cancel gym memberships, streaming services, or any recurring payments you hardly notice.
Lower Utility Bills: Adjust thermostats, weatherproof windows, check for leaks, and unplug electronics. Tiny steps can reduce monthly expenses substantially.
Avoid New Debts: Put off large, non-essential purchases and avoid “buy now, pay later” plans, which often increase overall costs.

Alternatives to Bankruptcy: Professional Guidance in Texas

The bankruptcy team at Machi & Associates, P.C. works daily with Texas clients overwhelmed by debt. For many, bankruptcy is not the immediate first step. Other proven legal and financial alternatives include:

Credit Counseling: Non-profit agencies can negotiate creditor terms, lower interest rates, and structure a debt management plan (DMP). You deposit one payment monthly with the counselor, who pays creditors. The impact on your credit is usually less severe than bankruptcy, but requires discipline and months (or years) to fully succeed. Make sure to use a reputable agency and check for fees.
Debt Consolidation: This brings multiple debts into a single loan. You’ll ideally enjoy a lower rate, easier budgeting, and fewer late fees. This strategy works best with steady income and good credit, and doesn’t erase original debts—it simply changes how you pay them off.
Direct Negotiation with Creditors: Many creditors would rather accept reduced payment than risk getting nothing after bankruptcy. Machi & Associates, P.C. can advise you and, if needed, negotiate directly to lower your balance, waive fees, or offer fair payment arrangements.
Judgment-Proof Status: If your only income is exempt (such as Social Security) and you have few assets, you may be “judgment proof.” Even a court judgment for non-payment may not be collectible. An attorney can explain whether you qualify.
Legal Protections: Texas and federal law shield some income (disability, unemployment, retirement) from garnishment. Machi & Associates, P.C. will clarify and defend your rights.
If you’re considering bankruptcy after a personal injury, see our personal injury legal services page for related resources.

When Bankruptcy Is the Right Solution

Despite your best efforts, income and expense adjustments or debt negotiation may not be enough to solve your debt crisis. If you are still facing lawsuits, foreclosure, repossession, wage garnishment, or cannot maintain basic needs, Chapter 7 or Chapter 13 bankruptcy may give you a true “fresh start.” Bankruptcy provides legally enforced relief: collection calls stop, lawsuits and garnishments end, and many debts can be discharged or restructured under court supervision. Before deciding, consult with a trusted attorney—like those at Machi & Associates, P.C.—to make sure you understand the benefits, costs, and long-term impact of all your options.

Why Work With Machi & Associates, P.C.?

Decades of experience guiding Texas families through financial crisis, debt reduction, and bankruptcy law.
Local knowledge of courts, creditors, and consumer protections in Arlington, Dallas-Fort Worth, and across North Texas.
Personalized guidance so you can weigh bankruptcy alternatives before you commit.
Respectful, clear communication—you’re never a number or a file: we focus on your unique financial story.
Comprehensive support—from credit counseling referrals to representation in bankruptcy court or creditor negotiations.
Transparent, fair fee structure: always know your costs and your options up front.

Take the Next Step – We’re Here for You

If you’ve tried everything and debt relief still seems out of reach, remember: you’re not alone, and solutions do exist. Call Machi & Associates, P.C. for a free, no-obligation case evaluation. We’ll review your finances, suggest alternatives, and stand by your side if bankruptcy becomes your best or only option. Whether you’re fighting to keep your home, avoid garnishment, or rebuild after a personal injury, Machi & Associates, P.C. protects your future and your peace of mind.

Explore your full options—visit our pages on bankruptcy law in Texas and personal injury resources to learn more, or schedule your consultation today.