What are the Alternatives to Filing for Bankruptcy?
If you are in over your head with debts, you could be thinking about getting a fresh start by filing bankruptcy. However, you’re likely having doubts about this decision. It’s true that bankruptcy can be a good way to get your finances under control again, but it’s important to look into your other options to make sure that you’re choosing the best one. You might find that one of these options is actually better for you. If not, you can then talk to a bankruptcy attorney and know that you are making the right decision.
- Negotiate With Creditors
If your debt isn’t too out of control just yet, you might find that negotiating with your creditors is a viable option. This is something that you can get professional help with, but you can actually get started by yourself.
You will need to contact your creditors to see if they can help you get your debts paid off. Since your creditors do want to get paid, they might be more flexible than you think. For example, you might be able to negotiate lower monthly payments, or you may be able to defer one or more payments until a later date. This can help you get caught up.
If you are willing and able to pay out a lump sum, you might find that your creditors will negotiate with you and accept a lower amount than what you owe in exchange for a large lump sum payment. This can be a good way to reduce how much you have to pay and to settle your accounts.
- Consider Credit/Debt Counseling
If you feel as if you can’t get your finances under control on your own, you may want to look into credit or debt counseling. With this type of counseling, you’ll be working with a team of professionals who can help you get your debts paid. They may work with your creditors to reduce the amount that you have to pay, and they can help you make arrangements to pay off your debts while sticking within your regular budget. Additionally, they may help you secure a debt consolidation loan so that you can consolidate all of your debts at a lower interest rate, which can help you save money and prevent you from having to juggle multiple debts.
Bankruptcy can be a good option for many people. However, it’s important to know that it’s not your only option. It’s always a good idea to look at all of your options before taking this major step. If you are thinking about filing bankruptcy, make sure that you meet with a bankruptcy lawyer first. Your lawyer can help you determine the answer to the question, “What are the alternatives to filing for bankruptcy?” Call Brandy Austin Law Firm today.
