Q: Several people have suggested that I file for bankruptcy. I want to avoid it. What are the alternatives to filing for bankruptcy?
A: There are several viable alternatives to filing for bankruptcy. Whether or not these alternatives are right for you depends on several factors including the amount of your debts, your current household income, available cash to pay off your debt, etc.
Alternatives to Bankruptcy
- Out of court settlement with creditors
- Reduction of payment to creditors
- Attaining help from consumer credit counseling services
- Payment of debts by selling or further mortgaging a property
These alternatives require the cooperation of creditors. It is more likely that they will agree to these alternatives soon after financial difficulties begin. The worst thing you could do is avoid speaking with your creditors. If you want to resolve your situation without paying fees to a professional, simply call your creditors and explore what type of payment plan they can arrange with you.
David Giller, Esq. is a Consumer Law attorney, providing professional, confidential and compassionate legal advice throughout New York City and northern New Jersey in financially stressful matters including bankruptcy, foreclosure defense, debt settlement, Fair Debt Collection Practices Act and Fair Credit Reporting Act. To learn more about David or his law practice, visit www.gillerlaw.com.
