Depending on your situation, you may have some alternative options to filing for bankruptcy. You don’t necessarily have to pay an attorney to settle your debts, you might explore your other options for debt relief first and realize that you would prefer not to file for bankruptcy at all.
Here are three examples of alternative debt relief methods:
Taking Out A Loan
While it may seem counterintuitive, some people find it helpful to consolidate their debts into one place by taking out a personal loan or home equity line of credit. This way, you can settle past-due bills and halt creditor harassment while making simpler lump payments on a regular schedule.
This can be a difficult situation for some, as no one wants to part with an asset that they’ve worked hard for or are saving as a nest egg for the future. However, I have worked with people who realized that all of their financial problems would be solved by making the decision to sell their house. Sometimes, this provides the clean slate needed to move forward without filing for bankruptcy.
Working Out A Settlement
In some situations, you can work out a settlement with your creditors outside of bankruptcy court. For example, some people want to file for bankruptcy as soon as they get sued. First, however, it’s important to understand that if this is your only debt, you might be able to work out a settlement with your creditor, and you’ll be fine.
Some Options Aren’t As Good As They Seem
If you’re going to pursue an alternative to bankruptcy, it’s best to make sure you won’t have to make an appointment with me six months to a year later. What I mean by that is, if the solution to the problem at hand is going to be a bandage on a bullet wound, don’t do it.
For example, some people will choose to dip into their 401K to get the funds they need to settle their debt and avoid bankruptcy. But what if you don’t have enough money to truly cover your debt? What if your financial situation gets a little better for a moment only for you to wind up in debt again?
In this kind of situation, the only difference between where you were before and where you’d find yourself later is that your retirement account has now taken a hit, and you still have to file for bankruptcy.
Additionally, I don’t advise everyone to get a loan to pay their debt if they don’t have the financial situation where it’s going to make sense in the long term. For some, taking out a loan may be delaying the inevitable while putting yourself in an even worse spot later on.
If any of this sounds like it’s even a remote possibility for you, I urge you not to take any such action until you’ve had the chance to consult with a bankruptcy attorney such as myself. Unless you know beyond a shadow of a doubt that it will eradicate your need to file bankruptcy both now and in the future, please wait to make a move unless you know for a fact you’re not going to have to come to see someone like me later down the road.
How To Choose The Right Debt Relief Method
Your ideal debt relief method depends on all the factors unique to your situation – and sometimes, that means debt relief just won’t work for you. Whatever the end result turns out to be, the best way to find out how to get started is to speak with a bankruptcy attorney you feel that you can trust.
I often find myself wishing I could have talked to people months or years before we ever met. More often than I’d like to say, clients come to me after they’ve already done the “wrong thing”. Unfortunately, this puts some people in a position where they can’t file for bankruptcy, but they can’t get out of debt either. So, they’re stuck in their situation, and that’s not where anyone wants to be.
This underscores an important commitment of mine. I don’t want to see anyone in a position where they are stuck. That’s why I provide anyone that I meet all their choices, both within and outside of bankruptcy.
At the end of the day, I want the people I work with to be able to make an informed decision – because even though bankruptcy may be the best choice, it is rarely ever the only option.
With the guidance of a skilled attorney for Bankruptcy Law Cases In Florida, you can have the peace of mind that comes with knowing that we’ll make it look easy. For more information on Alternatives To Filing For Bankruptcy, an initial consultation is your next best step. Get the information and legal answers you seek today by calling (407) 305-5599.