Edge of Bankruptcy

Submit Enquiry




Enquiry Type


Enter Code:

Bankruptcy Alternative

If your debts have become so large and unmanageable that you feel like you're in over your head, you might be tempted to file for one of the three types of bankruptcies available to individuals and business owners in the United States. After all, that would mean getting all of your creditors off your back so you can start over and build yourself up again. Although that could conceivably happen, the process doesn't often unfold as quickly or as smoothly as you'd like. In addition, any bankruptcies that you file will stay on your credit record for 7-10 years and will make it difficult for you to get loans or credit cards at reasonable interest rates during that period of time. In other words, you should consider a bankruptcy alternative before committing yourself to such a drastic step.

There are several bankruptcy alternatives that can help you pay off your debts while allowing you to maintain a reasonably comfortable lifestyle. The first thing you can try to do is negotiate with your creditors. You can either do this yourself or hire a professional credit counselor to do it for you. Most of the time, you'll find that your creditors will be more than happy to accept 75 or 50 cents on the dollar for the amount of your debt because they realize it's better than getting nothing at all.

A second bankruptcy alternative that you should consider is refinancing your home. When you refinance your home, you're basically getting a new loan to pay off your original one. Depending on how much equity you've built up, you might be left with enough cash to settle all of your other outstanding debts. In addition, if your new loan has a lower interest rate than your old one, you'll probably have lower monthly payments, too. There's no question that refinancing your home is a great bankruptcy alternative, so be sure to check out this option thoroughly.

Refinancing is wonderful, but that's assuming you own a home. If you don't, you'll have to continue looking for other bankruptcy alternatives, such as debt consolidation. There are lots of consumer credit counseling services that can help you with debt consolidation. Instead of paying your creditors directly, you'll send a single payment to the credit counseling service and they'll divvy up the money to all of the people or organizations you owe. The credit counseling service might also offer you the chance to take out a personal loan, which doesn't have to be secured by collateral. Depending on the interest rate, you might consider applying for one. If you're approved, you'll be able to pay off your high-interest credit card debts and save money that way.

Another sound bankruptcy alternative would be to downscale as much as possible. This means moving into a smaller house or apartment, taking on roommates, driving a less expensive car, selling off any assets that you can part with, etc. The more money you can scrape together on your own, the less additional debt you'll have to incur in the future.

As you can see, there are several sound bankruptcy alternatives for you to choose from. Everybody makes financial missteps from time to time; however, you shouldn't compound your problems by declaring insolvency and blowing off your creditors. Instead, choose the bankruptcy alternative that sounds the best for your particular situation and start working to repair your credit now

This article is free for republishing
Source: http://www.financealley.com/article_33968_76.html

Don't Miss...
  1. Loans for your crucial needs and a better lifestyle
  2. Personal Tenant Loans: Excellent Opportunity For Homeowners
  3. Personal Loans: If you dream it, you can HAVE it
  4. Cosmetic Surgery Loans- Get a face lift with cosmetic surgery loans
  5. Home Improvement Loans: Making Of Your Dream Home
  6. Rejuvenate your Home with Home Improvement Loans
  7. Instant Payday Loans Help You Meet Your Short Term Fund Requirement
  8. Bad Creditors Are Also Eligible For Loans
  9. Cosmetic Surgery Loans- Get a face lift with cosmetic surgery loans
  10. What You Must Know About Debt Consolidation Loans? by www.consumercreditcounseling.net
  11. Debt Consolidation Loans as a solution to Credit Card Debt
  12. Loans that heed to your urgent requirements
  13. Secured Debt Consolidation Loans Lessen Your Worry
  14. Loans By Post-Dated Checks
  15. Change the way Your Home Looks with Home Improvement Loans
  16. Bad Debt Unsecured Loans: Loans without Security for Bad Creditors
  17. Self Employed Loans : Carve a niche for yourself
  18. Loans with Bad Credit: A Boon for Bad Creditors
  19. Bad Credit Personal Loans: A Perfect Breather for Poor Creditors
  20. Rekindle Your Dreams With Bad Credit Business Loans
  21. Secured Personal Loans Bad Credit: Materialize the Unfulfilled Wishes
  22. Poor Credit Auto Loans: Vehicle for Poor Creditors
  23. Secured Home Improvement Loans: You Deserve Better!
  24. High Risk Bad Credit Personal Unsecured Loans: Security No Problem for Bad Creditors
  25. Loans for Bad Credit: Financial Solutions for Bad Creditors
  26. Cash Advance Loans: Get When You Need
  27. Bad Credit Homeowner Loans: tackling the financial requirements of poor creditors
  28. Sub Prime Auto Loans: Bad Creditors can Own Car too
  29. Get Freedom From Your Financial Crisis Through Instant Loans
  30. Bad Credit Rating Unsecured Loans: Tension Free Cash for Poor Creditors
  1. Debt help & advice - IVA vs Bankruptcy
  2. Are Your Debts Out Of Control? You May Need A Debt Reduction Service.
  3. Reasons We File for Bankruptcy
  4. 10 ways to protect your self from bankruptcy caused by prolonged illness.
  5. Life After Bankruptcy | Let's get it going!
  6. Life After Bankruptcy - If You Don't Fix Your Credit Now, You'll Hate Yourself Later
  7. Bankruptcy Alternatives - 5 Ways to Avoid Bankruptcy
  8. Bankruptcy Home Equity Loan Choices
  9. Survive After Bankruptcy Using Wilderness Survival Skills
  10. Clearing Up the Question of IVA Fees

© Edge of Bankruptcy 2008. All Rights Reserved