There are alternatives to filing for bankruptcy, each of which works in certain cases. Three examples are: direct negotiations with your creditors, assignments, and workouts.
▪ Creditors will sometimes agree through direct negotiations to discount their claims.
▪ Some states have procedures called assignments for the benefit of creditors, where assets are assigned to a neutral third party who sells them for the benefit of creditors.
▪ Formal workouts involve meeting with creditors as a group and entering into a payback agreement over time.
However, these alternatives are dependent on the willingness of your creditors to go along with them. If you are in financial trouble you may find that your creditors are quite unreasonable and bankruptcy is probably your best choice.
Another alternative is to simply do nothing. If you have no assets and plan on living on a very low income for the foreseeable future, you may be judgment proof. Of course, if you feel you could have a brighter future if only you could erase your debts, then bankruptcy is probably your best bet.
Contact us at 888-312-5004 (toll-free),562-321-5051, 626.450.0639, or 714.202.9270 for your FREE PHONE CONSULTATION to discuss any of these alternatives and the freedom that bankruptcy can give.
A word of caution: you have undoubtedly heard ads for various organizations that promise to work things out with your creditors and repair your credit. Many of these outfits are scams pure and simple, and as a result they are now facing criminal actions by the Attorneys General in a number of states. These scam artists take your fees and leave you saddled with your debts. Avoid them. You're better off doing nothing than being taken in by them.
