Alternatives to Bankruptcy

Bankruptcy is not the only way to deal with debt overload. In some cases, other methods of handling debt might be more advantageous to the debtor than declaring bankruptcy. It is always in your best interests to seek sound financial advice and information from a professional who deals with bankruptcy and its alternatives. As a Tampa bankruptcy attorney, I have assisted many individuals in the counties of Hillsborough, Pinellas, and Pasco to evaluate their financial situation to determine what the best options are for them. My firm is dedicated to helping clients understand and achieve their financial goals.

What are the Alternatives to Bankruptcy?

Alternatives to bankruptcy may include out-of-court settlements with creditors, reduced payments to creditors, assistance from a consumer credit counseling service, debt consolidation loans, or paying off debts by selling your assets or borrowing on them.

Out-of-court settlements may settle your debts at a reduced amount. This may be done through a company that will negotiate with your creditors for you. A debt counseling service can consolidate your monthly payments and may be able to get payment reductions on your unsecured debts. If you are in such a bad financial situation that you will not be able to meet even reduced payments, then this alternative will not solve your problem.

Another option is to borrow money against the equity in your home to pay down your debt. This, of course, requires that you have equity in your home. It also requires that you are able to make the home equity payments. This option needs to be looked at very closely so that you don't wind up worse than when you started.

If you have any additional assets, selling them and paying off your debts with the proceeds is another way to handle too much debt.

To learn more about how bankruptcy and debt solutions, contact the Tampa Bankruptcy Attorney at the firm today!