Bankruptcy alternatives aren’t always obvious to those faced with the possibility of filing for Chapter 7 or Chapter 13 debt relief. When the American economy took a downturn several years back there were many who found themselves unemployed or wages cut dramatically. Increasing gas prices and costs at the grocery store haven’t made life any easier. Yet, in this article there are a few bankruptcy alternatives that might very well lighten the load. If these bankruptcy alternatives don’t seem the right fit, talk to an attorney who specializes in these cases for more ideas or how to best file in court. Be sure the lawyer one chooses is at the top of their game and has years of experience under their belt.
Here are a few bankruptcy alternatives:
1) First talk to each individual creditor and ask them what they can do to help create a payment plan that the debtor can feasibly meet. Many don’t think to start off at the source and assume that the creditor won’t play ball. The fact is that they want their money in any way they can get it and are often willing to create a means to pay off what’s owed without going to court.
2) Contact a debt consolidation company that will deal directly with creditors to find a solution. This is especially helpful when there are several sources owed money. With a debt consolidation company all debt is boiled down to one payment the debtor sends in which is then dispersed among the interested parties. Often debt is reduced dramatically with these companies and relief that much closer.
3) It’s not a bad idea to look around for things that can be sold in yard sales or consignment stores to earn extra cash for debt repayment. If there’s a gym membership that isn’t being used, cancel it. Clipping coupons and canceling magazine subscriptions rarely read are other ways to save money. When buying a car, look at a practical, pre-owned model with great gas mileage. This will also come with lower monthly payments, less paid to fill up at the pump and more affordable vehicle insurance.
Bankruptcy alternatives come in all shapes and sizes. Don’t let the big bottom line number owed on credit card debt, loans or a mortgage scare one into court. Consult with a law firm in the area for more ideas and find out if filing Chapter 7 or Chapter 13 is necessary. There are new laws that make filing these days more difficult, but hiring the right representation can help remove many roadblocks those who go it alone hit hard. The bankruptcy alternatives here are just the tip of the iceberg. Don’t jump at going to court when there are plenty of good ideas out there to avoid the process altogether.
