Alternatives to Bankruptcy

There are alternatives to bankruptcy that consumers can choose. Most will require some outside assistance, from a lawyer or credit counselor. Lawyers can be the best first choice to consult because you can get started with a free consultation. Simply click on our website or call our firm for instant relief, and be on your way to better money management. Use your free consultation to obtain answers to questions about bankruptcy and its effects, or to find out how to get started with debt settlement actions.

One thing you can try, if you have no wages and no assets, is to simply do nothing. This applies to unsecured loans only, however, because you have nothing at risk to lose. With unsecured loans, your lender has no viable alternative for collections other than to keep calling you. In that case, there are consumer credit laws that protect you from abusive collection efforts. If you do nothing, your credit report history should clear out of these unpaid debts after seven years. If you pursue a bankruptcy, it will remain on your record for ten years. 

Another thing to try is to manage your money better. Obtain more income, and cut expenses so you can apply more to your debt repayments. Negotiate with your creditors and try to work out better repayment terms, or lower interest rates. This is another case where our lawyers may be able to assist you by making the requests for you. 

A formal debt consolidation loan may be an option if you have collateral and are not severely behind in payments. This is where you borrow on a new loan large enough to payoff the other debts, so you only have one debtor, and a smaller overall payment at lower interest. Over time, the entire debt will be repaid faster. Our lawyers can help you formulate this plan and put together your written proposal.

Other out of court ways to settle old debts include getting a new loan or credit card and balance transfer your bad debts to this new loan. You can refinance your existing loan, borrow from friends or family, or borrow from your savings. Using our lawyers can be one way to avoid the negatives of making a debt consolidation and to restructure your debts without resorting to bankruptcy. Click through on our website for additional information, or to set up a free consultation.