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Exploring Your Bankruptcy Alternatives

Posted on in Bankruptcy Attorney
Exploring Your Bankruptcy Alternatives

When you feel like you cannot get your personal debt under control, filing for bankruptcy can be an attractive option. For many individuals, bankruptcy is the key to having their debts discharged and moving forward with their lives. Although bankruptcy can be a great tool, it is likely not your only option. Depending on your circumstances, you might be better suited to one of the bankruptcy alternatives discussed below. Never make a decision about filing for bankruptcy without first discussing your situation and your options with an experienced bankruptcy lawyer. You could have more options than you realize.

You Might be Able to Consolidate your Debts

When you have a lot of debts to pay off, one of the challenges you face is simply keeping each payment's due date and required amount straight. A way you can make this easier for yourself is to obtain a debt consolidation loan, which is a single loan that pays off all your existing debts, leaving you with only the one loan to repay. Typically, these loans take two to five years to repay through fixed monthly payments.

You Could be Eligible for a Debt Repayment Plan

You might be able to negotiate a debt repayment plan with your creditors. This may require some lifestyle adjustments for you and some negotiation with your creditors, but if you can make the payments detailed in your plan, you can avoid the court involvement and credit consequences that come with filing for bankruptcy.

Work directly with your creditors, not the collection agencies they use, to develop your repayment plan or negotiate a settlement. Your creditors want you to repay your debt and by reaching out directly to them, you are more likely to reach a mutually-beneficial agreement.

Sometimes, Doing Nothing is the Best Choice

If neither of the options discussed above are realistic options for you, you might be best off not taking any action at all. This option is for individuals who have literally nothing beyond the basic necessities, like clothing, some furniture and household goods, and perhaps a small amount of income from unemployment, Social Security, or even a job. Individuals in a case like this are “judgment proof,” which means that there is nothing a creditor can legally take from them even if the creditor obtains a court judgment to collect the individual's debt.

Work with an Experienced Libertyville Bankruptcy Lawyer

If you are facing a debt load that you cannot realistically pay off on your own, you might be considering bankruptcy. Although bankruptcy can be a useful tool for reducing your debt amount and regaining control of your finances, it is not the only tool you can use. Our team of experienced bankruptcy lawyers at Newland & Newland, LLP can work with you to explore your alternate options to bankruptcy and determine which is right for you. Contact our firm today to set up your initial consultation in our office. We serve clients in the North Chicago, Fox Lake, Zion, Winthrop Harbor, Waukegan areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.

(image courtesy of Dodgerton Skillhause)

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