Depending on your situation, you may be eligible to work through a bankruptcy alternative. This means that you may be able to avoid filing, and still reduce or repay your debt. Bankruptcy alternatives can help keep your credit up, and can help you to rearrange your finances without having to go through all the paperwork and court appointments.
A bankruptcy attorney can help you with alternatives, and may be able to inform you of the best debt-reducing method for you. You will want to ask yourself what you want to accomplish in bankruptcy. After identifying your goals for the bankruptcy, you can determine the best approach, and see if you can accomplish those goals using a different solution.
For example, if your main goal in bankruptcy is to stop creditor harassment, there may be another way to do this. You can invoke federal and state debt collection laws to help you stay protected from abusive and harassing behavior. You may not need to file for bankruptcy if the creditor is already acting outside his or her legal rights.
Also, you can negotiate with your creditors. This may help you to get back on your feet or you may be able to arrange a debt settlement with the collection parties. Oftentimes, it is wise to have a bankruptcy attorney on your side to help you negotiate with creditors. A bankruptcy attorney understands the nature of the business and can help you to craft a fair deal that works in both the creditor's favor and your best interests.
Many people aren't comfortable performing aggressive negotiation with collections agencies. Thankfully, attorneys have been trained in the art of negotiation and are often significantly good at working with collections agencies. You can also get help from a credit counseling agency if you prefer. Either way, professional help can be extremely valuable in these situations.
If you are filing for a Chapter 13 bankruptcy because you want to create a comprehensive payment plan to organize all of your debt, then you should contact an attorney before filing. You may be able to arrange the same repayment plan without actually having to file. Many credit counseling agencies can help you to arrange a satisfactory repayment plan and discuss the options with all of your creditors.
A bankruptcy attorney may also be able to help you create this repayment plan without actually having to file. This can work to your advantage, because it means that you will not have a bankruptcy listed on your record, and this can help to improve your credit score.
Some people choose to do nothing when faced with the choice of bankruptcy. Interestingly enough, failing to file may be the best thing for some people. Those in debt who live simply with little income and property may be protected by a judgment proof.
This means that anyone that sues you and obtains a court judgment won't be able to collect from you because you don't have anything that they can legally take. You can't be thrown in jail for not paying your debts in these situations, and a creditor can't take away your basic essentials. Therefore, you may be able to live in simplicity without having to file for bankruptcy.
Creditors cannot take away any Social Security, unemployment, or public assistance benefits from you, since they are government funds. If you want more information about the different alternatives for bankruptcy and what action works best for you, don't hesitate to contact a local bankruptcy firm. With the right firm on your side, you will be able to determine the best route to help you achieve financial freedom. Call today!