What are the Alternatives to Bankruptcy?

//What are the Alternatives to Bankruptcy?

What are the Alternatives to Bankruptcy?

Understanding Alternatives to Bankruptcy

Many people do not want to declare themselves bankrupt, and in some situations, it is not the best option either. Luckily there are plenty of alternatives to bankruptcy, and an experienced attorney will be able to advise you what those options are. A consultation with an attorney at the Cornwell Law Firm can help you determine if any of the following alternatives to bankruptcy might be the best option for you.

  • Debt Settlement: In some situations, creditors and lenders will work with their debtors to create a debt settlement. These settlements are often given to individuals who can not afford minimum payments. You or your attorney will work with the creditor to reach an agreement to pay and any remaining debt will be discharged, and you will not be liable to pay what is remaining.
  • Short Sale: Rather than facing bankruptcy or foreclosure, a homeowner may be able to eliminate their mortgage loan by proceeding with a short sale. These are agreements between the homeowner and lender to sell the home for less than what is owed on the loan.
  • Liquidating Assets: Do you have stocks or bonds with significant value or a car that you can sell for quick cash? Sometimes liquidating such assets will allow you to pay off your debts quickly. The toughest part about this option is breaking the emotional tie to your possessions.
  • Debt Consolidation Loan: Some people prefer to obtain a debt consolidation loan so that they can pay one creditor rather than multiple. If you have enough equity in your home, you could take out a home equity loan to do this. Be aware though, that if you fail to pay your home equity loan you may find yourself evicted.
  • Chapter 13 Bankruptcy: While this is still technically bankruptcy, it is not a liquidation bankruptcy like a Chapter 7 bankruptcy. In Chapter 13, you will have the option to pay off creditors through a payment plan that allows you to repay them over a period of five to seven years. You will also be able to retain your vehicles, home, and other property.

Contact an Experienced Bankruptcy Attorney Today

If you have been considering bankruptcy, but are looking for alternatives to filing for bankruptcy, you need to contact a bankruptcy lawyer as soon as possible. Our attorneys are dedicated to helping our clients achieve the most favorable outcomes for their financial issues. If you are already behind on your payments, do not hesitate to get in touch with the attorneys at the Cornwell Law Firm.

While there are multiple alternatives to bankruptcy, sometimes these alternatives do not work. In some cases, they may simply delay the inevitable. If you have been working with a debt settlement company, they will not be able to help you with the next step, but we can. If a bad situation takes a turn for the worse, we will be able to help you file the paperwork necessary for bankruptcy and help you get started on a path to financial freedom.

Regardless of the direction you take, we take pride in finding the best possible financial solution for you and your family. We will take the time to determine what your goals are and come up with a plan to help you meet them. Contact us today to schedule a consultation.

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2019-02-28T15:20:50-04:00

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