Let’s Talk Bankruptcy Alternatives

We’ve said in previous blog entries that, while bankruptcy is a good option for some, there are alternatives. In this article, we’ll discuss a few of them.

Options Other Than Bankruptcy

If you are facing crippling or unmanageable debt but are leery of bankruptcy, there’s till a host of things you can do to alleviate the headaches.

• Negotiating Directly with Creditors Whether you realize it or not, you do have the power to negotiate directly with your creditors. You stand a much better chance of being successful if you have some form of steady income. Your creditors may even agree to settle your debts for much less than you actually owe.
• Talk With a Credit Counseling Agency If you’re a bit squeamish about negotiating on your own or just do not have the confidence to do it, there are non-profit credit and debt counseling organizations that will work with you to repay what you owe. You can find a listing of approved credit counseling agencies in Arizona here.

A word of warning about going with a credit counseling agency. While the agency will help you put a plan in action to work off your debt, there’s no protection if you miss a payment. While Chapter 13 bankruptcy offers protection from missing a payment, any one of your creditors can cancel the plan to repay if you miss a payment. The fact that most of the agencies get most of their funding from creditors, there’s also the possibility of conflict of interest.

• Do Absolutely Nothing If you live rather simply and have little income and property, you may be in a situation referred to in legal circles as “judgement proof.” Essentially, this means that even if you’re sued, there’s little chance of collection because there’s simply nothing for your creditors to take.

Free Consultation: Discuss All of Your Options With the Experts at The Oswalt Law Group

If you’re under the thumb of crippling debt, we’d be more than happy to talk about the many options available to you. We’ve got wide-ranging experience with all of the processes listed above and more! Contact us here at the Oswalt Law Group by calling (602) 225-2222 for a free consultation.