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I Can Not Pay My Debt, but I Do Not Want to File for Bankruptcy

Posted on in Bankruptcy
I Can Not Pay My Debt, but I Do Not Want to File for Bankruptcy

When you are facing a significant amount of personal debt, the options you have depend largely on your individual circumstances. Filing for bankruptcy is a deeply personal decision that will affect your credit and other areas of your financial life for years after filing. Work with an experienced bankruptcy attorney to determine your options before you make this decision.

You might be able to take control of your debt through an alternate measure, such as one of the following:

Debt Negotiation

Depending on the amount of money you owe and your standing with your creditors, you could possibly avoid bankruptcy by working with them to either lower the amount of money you owe or extend the amount of time you have to pay your creditors back. You can work with a bankruptcy attorney and your creditor to develop a debt settlement plan in writing.

Debt Consolidation

Moving all of your debts into one loan with a monthly payment could be a viable option for you. When you choose to consolidate your debts, you can make it easier to pay them back in a timely manner because instead of many payments to make each month, you only have to make one.

Mortgage Loan Modification

If you are delinquent on your mortgage loan, work with your lender to determine if you can restructure your mortgage. The lender might be willing to work with you to help you avoid bankruptcy by modifying your loan. A modification might require you to reapply for a new interest rate. This, like debt negotiation mentioned above, is much easier with guidance from an experienced bankruptcy attorney.

Prioritize and Sacrifice

This might seem like basic advice, but it can be the key to managing your debt load and avoiding bankruptcy. Work with a bankruptcy attorney to determine which debts are the most urgent. Then, allocate money toward them. This will likely mean giving up certain comforts and luxuries you enjoy, such as dinners out and shopping trips. But for many individuals struggling with debt, it is the only way to getting out of debt without filing for bankruptcy.

This can include selling certain pieces of property in order to pay back your debts. Consider selling an extra car or any type of recreational vehicle, such as a boat or an ATV, and using the profit to pay down your debt.

Illinois Bankruptcy Attorneys

Never assume that bankruptcy is your only option for taking control of your debt load. Although this certainly is an option, there could be other options available that are better for you. To learn more about these options and how the bankruptcy process works, contact the Law Offices of Newland & Newland, LLP to schedule your initial legal consultation with our firm. Our team of bankruptcy attorneys has more than twenty years of experience helping indebted individuals like you work through their debt problems and reach satisfying, sustainable goals.

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