Alternatives to Filing for Bankruptcy
Bankruptcy allows the declarer legal protection from creditors and debt. However, some people do not wish to file for bankruptcy right away. Bankruptcy can make it difficult for individuals to borrow from lenders in the future and many wish to avoid the negative impacts that bankruptcy can have. Perhaps you can still afford small payments or you are willing to go through debt consolidation to avoid filing for bankruptcy? These various alternatives can help you avoid filing. Some individuals and businesses may be able to use some different options to avoid declaring bankruptcy.
What actions are available to me?
You do not always have to file for bankruptcy, you have options. If you are in a position that you may still be able to afford small payments to your creditors, you can try to manage some of your expenses now. You could possibly refinance or sell your home. Reducing these extra costs may grant you a little more cash each month of help pay back debt. You can try consolidation or reconstructing over the debts you owe.
Typically for debt consolidation you may need to borrow from a lender, but at least you would be making payments on debts already in collections. If you have the time to spend, you could also try to negotiate with the collectors. When you file for bankruptcy your collectors won’t be receiving any money. Most collection agencies would rather collect a small amount of money from you than receive nothing at all. They may offer payments to aid you in paying back your debt. Another alternative could be Consumer Credit Counseling Services and debt counseling.
If Nothing Else Works, Bankruptcy May be the Choice for You
If you have tried to consolidate, manage and negotiate all of your finances, perhaps filing for bankruptcy is your next best option. No one ever wants to file for bankruptcy, but there are still positive benefits to declaring yourself bankrupt. Remember, if you have any questions or concerns about bankruptcy and if you are eligible, you can contact our firm for a free case evaluation.