Filing for Chapter 7 or Chapter 13 bankruptcy is not the only option you have if you are in debt. In some situations, a non-bankruptcy course of action may be your best choice. Keep reading to learn about your alternatives to bankruptcy.

Negotiate a Settlement

One option is to attempt to negotiate a settlement for your debt. This is a good option if you have some surplus income, or you have assets you’re willing to sell. Negotiation can buy you some time to get back on your feet. You will typically broker a deal with the creditor, collection agency or attorney to allow you to make monthly payments towards the balance (or one payment towards a reduced balance).

Credit Counseling

Credit counseling may be a good option if you are not comfortable negotiating with your creditors or collection agencies. Seek out help from a nonprofit credit or debt counseling agency. An agency will work out a plan to help you repay your debts and improve your financial footing. I can help guide you to agencies that have worked with my clients.

Fight the Creditors

Another option is for you to fight the creditors and force them to prove their case against you. An attorney experienced in bankruptcy and bankruptcy alternatives can help you determine whether this is a viable option for you.

Do Nothing

This may sound odd, but one final option is for you to ignore any pending lawsuits or collection calls. This strategy comes with risk, so it is not often the best choice for everyone. If you live a simple life without much income or property, and plan on keeping this lifestyle in the future, you may be what is known as “judgment proof.” This means that anyone who sues you and obtains a court judgment won’t be able to collect from you simply because you don’t have anything they can legally take.  

It is important that you consult with an experienced bankruptcy attorney before you make any decision about filing for bankruptcy. I am here to review your options before you make a decision. Contact me today to schedule a consultation.