What can I do instead of filing for bankruptcy?
Some people may not be eligible to file for bankruptcy, either because they do not financially qualify or they want to exhaust every option before declaring themselves bankrupt. There are a few alternatives that may be available to these families and individuals. A non-bankruptcy action may help you reconsolidate your debt, stop harassing creditor calls, and get you moving in the right direction to improve your financial situation.
Once people are in debt, they may see no way out of their financial situation, and bankruptcy may seem like the only option to solve their problems. If your debt is low, however, and there is a chance that you may be able to pull yourself out of it, then you may be able to take advantage of a bankruptcy alternative, such as engaging in negotiation with creditors or debt counseling.
Negotiate with Creditors and Lenders
If you are having a difficult time paying off your debts, then you may be able to negotiate the debt amounts or payment schedule with your lenders. Often, a negotiation will play out in a positive manner, as most lenders and creditors would rather receive reduced payments than no payments at all.
You may be able to avoid Chapter 13 bankruptcy by participating in a debt counseling program. A debt counselor will help you develop a payment plan that allows you to pay back your debt in a timely manner at a rate that you can afford.
If you are living a simple life, providing for yourself and your family on a small income, and have little property or small amounts of personal effects and food, then you technically cannot be sued or forced to pay losses in the event that a creditor takes you to court. You are considered "judgment proof," and unless you fail to pay support or taxes, you may be able to pay minimum payments until your debt is paid off.
Finding the Right Debt Relief Solution
Are you concerned about your financial future? If you are questioning whether or not you should file for bankruptcy, it is important that you contact an attorney from Scott Mitchell Law Incorporated today to speak with us regarding your debt situation. Our firm has years of experience assisting individuals and families with obtaining the outcomes they are seeking, and we may be able to help you as well. If you have questions or concerns, then contact our team today.