What Are My Alternatives to Bankruptcy?
When you are struggling with harassing phone calls from creditors, it may be easy to think that bankruptcy is not only your best option, but your only option. However, before filing Chapter 7 or Chapter 13 bankruptcy, it is important to explore all debt relief options, including the alternatives to bankruptcy.
What Should I Do Before Filing Bankruptcy?
When dealing with creditor harassment, bankruptcy is not your first line of defense. Rather, federal and state law can protect you from abusive or harassing debt collection conduct. The Fair Debt Collection Act, for example, prohibits debt collectors from engaging in abusive behavior. This can include calling before 8 a.m. or after 9 p.m., using obscene or threatening language, and contacting third-party individuals other than your attorney or a credit reporting bureau. Rather than jumping right into a bankruptcy claim, it is important to consider your assets. If you have some income or assets you are willing to sell, it may work in your favor to negotiate these items with your creditors. Negotiation can not only buy you time to get your finances in order but some creditors may agree to settle your debts for less than you owe in an effort to expedite closure of the issue. If you are not comfortable negotiating with a creditor, you have the option of going through a Credit Counseling Agency or attorney. Both can negotiate with creditors on your behalf and help you form a debt re-payment plan.
When Bankruptcy Is Appropriate
No matter your situation, there are people who can help. If you have determined that you need assistance handling your debt, bankruptcy may be the right choice for you. While there are alternatives to bankruptcy that can and should be explored to avoid potential foreclosure, repossession, wage garnishment, or other legal action, it is also important to understand how bankruptcy can help you and make an informed decision about your choices. If you are facing the possibility of bankruptcy, and need help dealing with the ramifications of your debt, it is important to seek the legal help of the bankruptcy lawyers at Oswalt Law Group in Phoenix, Arizona. The Oswalt Law Group has extensive experience in a wide range of bankruptcy types and can aid individuals, families, and businesses in regaining control of their finances. Focusing on debt settlement and collections defense, the Oswalt Law Group can help you find the best solution for your individual case. Contact the experts at the Oswalt Law Group today to start your journey towards a debt-free life.