Alternative Bankruptcy Solutions

Bankruptcy is a great way to begin afresh however it’s not the best option for everyone. Before filing, think about the severity of your debts and your long-term financial goals. Alternative options often offer more manageable results and allow you to keep your credit in good standing.

Reduced expenses and negotiating with creditors is a great way to avoid bankruptcy. This strategy should be done before you file and requires careful budgeting and financial planning. If you can cut down on your expenses or negotiate a less interest rate the savings can be used to pay down your debt.

Selling assets is a way to lessen the burden of debt. This will allow you to pay off your debts and may even prevent you from having to file for Chapter 7 bankruptcy. Before selling your assets, you should speak with a bankruptcy lawyer to make sure that you are eligible for this type of relief.

In bankruptcy the court will “discharge” or “erase” the majority of debts that are not secured, including credit card bills, medical bills, late utility bills and personal loans. Certain debts will be able to survive bankruptcy, such as student loans, recent taxes such as alimony, child support and alimony. The best way to approach filing for bankruptcy is to concentrate on eliminating non-priority unsecured debt and then apply the money saved to pay for more costly debts that won’t be eliminated in bankruptcy.


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