Alternatives To BankruptcyIs Bankruptcy My Best Option?
ALTERNATIVES TO BANKRUPTCY
There are enough people out there who need to file bankruptcy that I do not need to make extra money filing for people who could be helped some other way. During our FREE CONSULTATION, if I determine you do not need to file bankruptcy, I will tell you, and you owe me NOTHING to hear the TRUTH. Here are a few alternatives:
- Other forms of bankruptcy.First, there are alternatives to Chapter 7 or Chapter 13 in the Bankruptcy Code. “Chapter 11” is a form of bankruptcy primarily for businesses. People can use it, but it is long, painful and expensive. “Chapter 12” is a reorganization for people whose principle income comes from farming. Our firm does not file either of these forms of bankruptcy.
- Take Out More Loans.Sometimes, a second mortgage is the answer. The interest becomes tax deductible and the payments may be lower. But remember that a house is NOT supposed to be “a large debt with a building attached to it”. Your goal should be to pay off your house and make it the one asset you protect. Chances are, if you do nothing to change your living expenses and your spending habits, you will fall right back into the same mess. And second mortgages can be an unnecessary headache, if you are laid off from work.
- Negotiated Settlements.Tell them about your financial troubles.Be honest with them.MENTION THIS WEBSITE! Let them know you’re considering Bankruptcy.Sometimes you can call your creditors up and re-negotiate your interest rate, your payment, and sometimes even the principal you owe them. Creditors want to get paid and they know that desperate people DO consider bankruptcy. It never hurts to call them up and ask!
- Credit Counseling.“Credit Counseling” is one of the fastest-growing industries in the United States. Credit counselors help you by negotiating with your creditors to obtain lower interest rates, lower payments, and sometimes even help you write down your balances. The upside is that you may be able to avoid bankruptcy. The downside is that some creditors will not work with credit counselors. You may also be so deep in debt that they cannot work out a payment that you can afford. WARNING!!! There are good credit counselors and there are bad ones. Do NOT be taken in! Many of my clients have reported being ripped off by internet scams – companies that exist only in cyberspace. They take your money and never make payments to anyone. In a few months, the creditors are calling, and all you have done is dig a bigger hole. Some of the largest companies are now being shut down by the FTC and being prosecuted in state and federal court. WHAT TO LOOK FOR: you should find a local company with a REAL office and REAL people that you can go in and meet and talk with IN PERSON. There are two that I recommend Consumer Credit of the Quad-Cities and Credit Management, both are in Davenport, Iowa. I have no affiliation with these companies, but they have a good track record. Here is their contact information:
423 17th Street
Rock Island, IL 61201
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Mon-Fri: 9am-5pm cst