Alternative Bankruptcy Solutions

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Bankruptcy is a great option to begin over however, it’s not suitable for everyone. Take into consideration the severity of your debt and your future financial goals before filing. Alternative solutions often produce more manageable outcomes and keep your credit in good standing.

Negotiating with creditors and reducing costs are excellent strategies to avoid bankruptcy. This strategy is best carried out prior to filing and requires careful planning and budgeting. If you are able to cut your costs or negotiate lower interest rates, the money saved can be used to pay down your debt.

Selling assets is another way to lessen your debt burden. This can help you pay off your debts and prevent you from having to declare Chapter 7 bankruptcy. Before selling your assets, you should speak with a bankruptcy lawyer to make sure that you qualify for this type of relief.

In bankruptcy the court will «discharge» or «erase» the majority of unsecured debts, including credit card bills, medical bills late utility bills and personal loans. Some debts, such as student loans, recent tax or alimony payments, as well as child support, will be able to survive bankruptcy. Before filing for bankruptcy, it’s a good idea to erase any debts that are not priority and then use any savings you can make on more expensive debts that will not be wiped out by bankruptcy.

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