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Are There Viable Substitutes To Filing Bankruptcy?

If you are looking to free your neck and get rid of your piling debt, bankruptcy is the best solution for you. However, this does not mean that bankruptcy lawyers do not offer other viable alternatives to their clients. In most cases, bankruptcy is recommended for clients who do not have the means to pay back any or all of the loan. In other cases, like Chapter 13 bankruptcy, it may also be the best line of action if you need more time to pay the loan at a flexible and progressive rate.

Many people see bankruptcy as an untouchable topic. This is mostly because of the stigma that has been associated with it. Thinking the world will judge you for your debts can plunge you into more debt. However, if you aren’t convinced that bankruptcy filing is the best option for you, other alternatives can save you the stress and constant harassment from creditors and collection agencies. Below, we look at some other alternatives to a bankruptcy filing that you should consider.

Creditor Negotiation

A huge percentage of people who consider bankruptcy filing are battling huge credit card debts. Credit card debts are easy to amass, and this is because the process of obtaining one is fast and straightforward. People who cannot caution themselves may easily run up the numbers and find themselves in a deep financial mess. The huge amount racked up in debt will continue to grow exponentially because of the unfavorable interest rate on credit card loans.

In the face of the increasing credit card debt, a good option and an alternative to filing bankruptcy is to discuss better rates with your credit card company. While this may work, most credit card companies will reject your offer. If your initial offer has been rejected, you may offer a lump sum to the credit card company in exchange for a more favorable interest rate on the remaining amount to be paid. This is also a game of chance as the credit card company may also decline your offer.

Work With a Consumer Credit Counseling Agency

If you have had no luck negotiating better interest rates with your credit card company, the next line of action is to explore credit counseling agencies and what they offer. These companies help you to reach a better agreement with your creditor. However, they do not have a 100 percent success rate. You should also be prepared to pay them for their services whether they get you answers or not.

On the flip side, filing Chapter 7 bankruptcy can help you to wipe the slate clean of this kind of debt and other unsecured debts, including personal loans. If you are unqualified for Chapter 7 Bankruptcy, Chapter 13 restructuring can give you a better and flexible chance of paying most, if not all of your debt.

Debt Settlement

Creditors may be willing to accept an offer if your debt is very delinquent, and it appears that they have no chance of recouping the entire amount owed. In this case, you can reach an agreement with the creditor to pay a certain percentage of the total debt owed. The creditor may also be willing to reach a flexible repayment plan with you.

In all of these cases, your bankruptcy attorney can guide you on the dos and don’ts and how to keep your properties safe from lawsuits, foreclosures, and repossessions. Need more information about bankruptcy and dealing with debts? Visit

Arizona Bankruptcy and Debt Solutions
1013 S Stapley Dr
Mesa AZ 85204

Do You Qualify for Bankruptcy?

Filing for bankruptcy isn’t the right solution for everyone. The determination of whether or not bankruptcy is an appropriate debt relief solution for your will be made based on a number of factors including the type and total level of your debt. Use this form to schedule an appointment with one of our bankruptcy attorneys. The consultation is completely free and there is no obligation.