Alternative Bankruptcy Solutions

Alternative Bankruptcy Solutions

Bankruptcy can be a great way to start over but it’s not for everyone. Before filing, think about the amount of debt you have and your long-term financial goals. Alternative options often yield better results and can help keep your credit in good standing.

Negotiating with creditors and reducing your expenses are excellent methods more info here to avoid bankruptcy. This method should be taken prior to filing for bankruptcy and requires a lot of careful budgeting and financial planning. If you are able to cut your costs or negotiate lower interest rates, the savings can be applied toward paying down your debt.

You can lower your debt by selling assets. This can help you pay off your debts, and could help you avoid having to make an application for Chapter 7 bankruptcy. Before selling your assets you should consult with a bankruptcy attorney to confirm that you qualify for this type of relief.

In bankruptcy, the court will erase or “discharge” the majority of debt that is unsecured such as credit card payments, medical bills, overdue utility bills, and personal loans. Certain debts, like student loans, recent tax, alimony, and child support, will be able to survive bankruptcy. A good approach prior to filing for bankruptcy is to focus on eliminating unsecured debt that is not priority and then putting any money saved towards more costly debts that cannot be eliminated by bankruptcy.

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