FAQ: What Are Alternatives To Bankruptcy?

What alternatives can be considered if you want to explore other options besides bankruptcy?

NC Bankruptcy Lawyer in Charlotte North Carolina for Chapter 7 / Chapter 13

What Other Alternative Do I Have?

Reduction of your expenses is helpful, as is getting a second job. Sometimes borrowing and refinancing can solve your problems, but you need to be really careful it doesn't get you into more financial trouble. 

Some creditors may be willing to offer settlements for less than what you owe, but you should consult an accountant to be sure that you won't owe taxes for the amount of debt written off in the settlement.  Companies may issue a 1099 tax form at the end of the year, which may be required to be added to your tax return as taxable income.

Borrowing money to consolidate your loans only works if you get a better rate and have a plan to get out of debt. Moving debts from one place to another is not a solution in most cases.

Debt Management plans are structured plans that consolidate your debts into one package. Make sure that the company you chose is reputable and isn't putting you into a program that doesn't leave enough money to pay your regular living expenses. Debt management programs affect credit ratings and participation in them is voluntary on the part of the creditors. One creditor refusing to participate can ruin the entire plan to get out of debt with a Credit Counseling Debt Management program.

Alternatives To Bankruptcy, By Cathy Moran

Debt Consolidation, Debt Management, And Debt Negotiation, by Jed Berliner

Debt Settlement Companies, Debt Negotiation, Debt Consolidation Billed As Bankruptcy Alternatives, But Are They Really? by Steven Otto

1701 Scott Avenue Charlotte North Carolina 28203
phone: 704 / 377-0776
fax: 704 / 377-0775

DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. Personal opinions may also be expressed. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area.

The Law Office of Susanne M. Robicsek is
a Federally Designated Debt Relief Agency
under the Bankruptcy Code.
I file bankruptcy cases for people in financial need,
and have been doing so since 1989.

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