Bankruptcy Alternatives

There are several possible alternatives to bankruptcy for those in financial trouble. It is important that when you consider these options that you investigate the organizations that you are dealing with and make sure that you don’t do anything that places you in a worse situation. For example some alternatives can have a negative impact on your eligibility to file a subsequent bankruptcy. Depending on the state of your finances you may be able to avoid bankruptcy by pursuing one of the following alternatives:

Composition Agreement: an agreement between two or more creditors to extend repayment terms or to accept less than full payment in discharge of debts.

Home Equity Loan: Homeowners who have adequate equity in their home may choose to apply for a home-equity loan to consolidate all of their debt into one monthly payment. Home equity loans typically have lower interest rates than unsecured debt and a repayment period that can vary from 10 to 30 years.

Debt Consolidation: Consumers may choose to use one of the many credit counseling services that typically have agreements in place with most of the nation’s major creditors allowing you to pay a reduced interest-rate and reduced monthly payments for a fixed period of time.

Debt Negotiation: Sometimes referred to as debt settlement, debt negotiation is often-times used for individuals who cannot maintain a debt consolidation/credit counseling program. Typically a debt negotiation involves paying a certain percentage of your overall debt and the company will then consider the debt as having been paid in full.

Consultation with an experienced Bankruptcy Attorney will ensure that the right choice is made. Take advantage of the free debt consultation with an attorney at Patel Law.

Call for a free consultation: (602) 750-6177 . There are alternatives to bankruptcy.