Bankruptcy

What Are The Best Alternatives To Bankruptcy?

If you are looking out for the best alternatives to bankruptcy, you will be glad to know that there are a plethora of options available to you. Now, you must be wondering if that is true why you cannot see them. The answer is that you are probably looking at the wrong side. These options are available to those who know where to look out for. The following information should help you with that.

Stop Avoiding Your Debt Collectors; Talk To Them

Does this sound scary? You are fed up of those harassing collection calls and now here is someone who is asking you to talk to those mean debt collectors. But, you should still consider this because some of the best alternatives to bankruptcy are likely to be hidden right out there. It is very important for you to keep in mind that none of your lenders or debt collectors wants you to use the bankruptcy protection. Bankruptcy is something that provides debt relief to debtors while most of the creditors end up bearing some heavy losses. Therefore, if you are going to file for bankruptcy without informing your creditors about it, this will be a shock for them and probably a loss of good opportunity for you. This is because if at all you dare to talk to your debt collectors and let them know that you are on the verge of filing bankruptcy, the chances are that they will make some debt settlement offers to you. If they get convinced that your financial situation is really terrible one and you are serious about getting bankruptcy protection, they may even allow you to make a reduced amount of payment in full and final settlement of your entire debt. You can get rid of all your debts by just making 30%-70% of the overall outstanding debt balance. Even if the creditors will be getting a reduced amount of money, it will still be a much larger sum of money for them as compared to what they are likely to get when you go bankrupt.

If The Statute Of Limitations Is Closer, Take Advantage Of Your Situation

You can come across many other best alternatives to bankruptcy if you review the statute of limitations that applies to your debts. Is the statute of limitations just a couple of months away? If yes, you can again take advantage of this situation and negotiate an affordable repayment plan with your lenders. It is important to note that you can no longer be held liable to pay those debts that have crossed the statute of limitations, which is usually not longer than one or two years. Why should you need to file for bankruptcy if you are going to get rid of your debts anyway if you just wait and watch for a few more months?

Last, but not the least, even if you are working on some of the best alternatives to bankruptcy, you can ensure effective results only if you demonstrate good financial discipline. For example, if you are being offered a debt settlement plan, you must not make further defaults. This is where budgeting plays a crucial role. You can access a wealth of information on budgeting by visiting the section “Budgeting” under the “Debt Consolidation” category on this blog.


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One Response to “What Are The Best Alternatives To Bankruptcy?”

  1. Jackson says:

    Debt problems become so big that a person starts thinking about filing for bankruptcy. But Bankruptcy can not be treated as a solution of multiple debts; it should be your last option to implement because bankruptcy itself is a very complicated process and it makes very deep effect upon your credit score and that too for a very long time (8-10 years). If you relax yourself and think about your financial situation, you must reach to any solution other than filing for bankruptcy. Once a person finds his/ her debts unmanageable they just start avoiding their creditors and this is the worst thing they do because if you want to solve the situation, you have to talk to your creditors and try to find a solution you should tell them about your financial condition and your inability to do the repayment in time. Every one want his money back so if they will get convinced about your financial situation they will try to make a smooth way to get their money back, they can offer you some easy to implement debt settlement plan. They know that if you cross your time of limitations, they will get nothing from you so they will give their 100 % to find the best solution of your debt problems.

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