Bankruptcy can be a trying time for any business, and you need to make sure that you keep a calm center amid all the turmoil. Debt, creditor harassment, and stress, can cause you to make rash decisions in the heat of the moment. One of those decisions is thinking that bankruptcy is the only option.
There are some alternatives to filing chapter 7 and chapter 13 bankruptcy, and some of them might be much better for you. They also all have a specific goal in mind.
Stop Debt Creditor Harassment
The phone calls, the emails, the lost wages… having creditors harass you is the worst, and can get very frustrating whenever you are already dealing with so much. If you want to stop the harassment, you don’t need to file for bankruptcy, and instead you can look into state and federal debt protection laws.
These laws protect you from abusive debt collector conduct, and you can easily bring them into play whenever you feel like the collectors are crossing the line.
You might even be able to negotiate with your creditors to get them off your back. You can offer up income or assets for sale, and can give you time to get back on your feet. Sometimes you can even settle your debt for less than you owe with this method, however it is still a good idea to have a lawyer on your side.
Talk To A Counseling Agency
A credit counseling agency can help you with the negotiation process by helping you repay your debts. They will negotiate on your behalf, and give you information about how you can improve your financial strategy. The agency will work with you to create a plan, and this plan allows you to repay your loans over time.
This allows you to pay off your debts over a period of time, without having ‘filed for Chapter 13 bankruptcy’ on your record. There are a few risks, but it can be an alternative in a pinch.
Instead of Filing For Bankruptcy, Do Nothing
If you physically cannot pay your debts, a good option is just to not pay them. If you are scraping the bottom of the barrel and are unable to make money in the future, then people might not be able to sue you for your debt. There’s nothing for them to take if they do. Unless you default on child support or government taxes, you can’t be arrested for not paying.
Plus, the basic essentials can’t be taken away from you by law, so while it won’t be a comfortable debt free life, it will be a life you can live.
Figuring Out Your Next Steps
Before you take on an alternative to bankruptcy, you need to talk to an expert. Alternatives aren’t always the best solutions, so make sure that you have a plan to avoid bankruptcy while still paying for your debt. You’ll be able to get out from under the weight of your debt soon enough, and then you can get back to living life.