Bankruptcy Alternatives are Available
Anyone who is suffering from extreme amounts of debt should consider the benefits that bankruptcy has to offer. By filing under Chapter 7 or Chapter 13, you could have your debts discharged or even repay them over the next few years. There are, of course, still downsides to such actions, which is why filing for bankruptcy is not necessarily the best option for everyone. It may be more beneficial for some individuals to seek an alternative course of action rather than bankruptcy, and it is my goal to provide you with all available options, including a variety of bankruptcy alternatives. Together we can find the right choice that best supports you and your family.
Common Bankruptcy Alternatives
One alternative to bankruptcy is debt negotiation. With the representation of an experienced attorney, you could negotiate with your lender to have your monthly payments reduced to an affordable amount. This could be done by eliminating your interest, extending the length of your loan term, or reducing the principal amount. Only a bankruptcy attorney knows exactly how low a lender will really go, so be sure to consult with a legal advocate right away to ensure that you obtain the lowest possible rate.
Another option to consider would be to settle your debt with your lender. After negotiating with your lender, you could come to an agreement that allows your debt to be completely forgiven once you pay a lump sum, the amount of which is usually less than the amount owed. This means that you could find relief without having to pay the full amount of your debt. Be sure to talk to a Marietta bankruptcy attorney about whether or not you are eligible for debt settlement.
An individual might also be able to have their debt discharged, meaning that it is forgiven without being repaid at all. The most common way to discharge your debt is by filing under Chapter 7, which allows part or all of your debts to be dismissed so that you can repay the rest or start over. Keep in mind that you must first complete the means test and be proven to be financially incapable of repaying your debts. A bankruptcy lawyer in Marietta could assist you in completing this test, as well as in pursuing the best option, so consult with one today!
Debt consolidation is a unique strategy that allows you to combine multiple debts into one new debt consolidation loan or line of credit. It helps you simplify the repayment process by reducing the number of creditors and monthly repayments you have to manage. It helps you lower the overall interest rate and/or monthly payment amount. It is a good option to pay off your debt without filing bankruptcy but it doesn’t apply to every situation.
Debt Management allows individuals to work with credit counseling agencies to create a debt management plan designed to help them pay off their debts. The plan is designed for the goal to help you reduce your interest rates, consolidate your monthly payment, and pay off your debts in a timely and manageable manner.
Credit Counseling As a Bankruptcy Alternative
Credit counseling is a service provided by non-profit organizations, credit counseling agencies, or financial counselors that helps individuals and families manage their debt and improve their financial situation.
The process of credit counseling involves a one-on-one consultation with a trained credit counselor. The counselor will review your income, expenses, and debts to help you create a repayment plan to pay off your debts and improve your financial health.
The process is beneficial in terms of
It can help you pay off your debts and improve your financial situation without filing for bankruptcy.
The service comes at little or no cost as it is provided by credit counseling agencies.
Provides you with financial education to help you understand budgeting, saving, and credit management.
However, there are some downsides of it, such as,
The process is time-consuming and may not be the best option for everyone.
It may not be able to help you negotiate with all of your creditors, and not all credit card companies will agree to lower your interest rates.
It might impact your credit score
However, the efficiency of this process depends on the credit counseling agency. If they are able to provide you with the best advice, you may come out of it without major losses.
Finding Financial Freedom
At Cherney Law Firm LLC, you can retain my legal assistance as I have handled more than 2,000 bankruptcy cases in my time of practice in the field. Since 2006, I have assisted clients in finding relief from overwhelming debt, and I can do the same for you. If you still are not sure, read some of my client testimonials; then, when you are ready, discuss your situation with me today through a free initial consultation to learn what options are available to you and to find out whether bankruptcy or one of these bankruptcy alternatives in Georgia is your best course of action.