Alternatives to Bankruptcy

Odds are, unless you're up to your eyeballs in debt and desperate for a way out, bankruptcy isn't your first choice to get back out of the red. While bankruptcy does offer you protection as you repay your debts, it probably isn't your first recourse. It's the kind of option you take when you're running out of options. Once you've filed for bankruptcy, you have to work your way up again from square one.

Depending on your financial circumstances, there may be ways to avoid bankruptcy. There are several other options at your disposal which are worth considering:

• Debt Settlement. Like the name suggests, debt settlement is a negotiation you make with your creditors in which they agree to a fraction of the total debt. When you declare bankruptcy, it can actually cost these companies more than if they just agree to accept 50% of the total debt and move on. Chances are good that your missed payments have elicited some suggestions on their part that you agree to a settlement. You should consult with an experienced debt negotiation lawyer to put the wheels in motion and ensure that you are getting the best deal possible.
• Debt Consolidation. Debt consolidation programs allow you to combine your various debts into one larger package, simplifying the whole debt process. Late fees on credit cards are waived.
• Debt Management. In debt management, an agency helps you to together a plan to reduce your debts by effectively paying your bills.

It's definitely worth it to investigate all of your options fully before committing to a major financial decision. The goal is to reduce your debt by staying on top of your payments.

Contact Us

If you or someone you love is considering filing for bankruptcy, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, by calling 480-829-0494.