If you’re considering filing bankruptcy, then you’re already in a tough spot. You’re facing mounting debts and pressure, time is low, and so is money. You need a solution, and bankruptcy offers that. However, there are also various non-bankruptcy solutions or bankruptcy alternatives which are available to you. It’s important to learn more about these and how they work, so that you have a good sense of what all of your different options are.
One resolution is a compromise or negotiation with a lender. In this case, you or a representative will try to work out a direct solution on a lender by lender basis. Is there a way to reduce the monthly payment threshold, or carve out some of the total obligation owed? What about the interest rate that you’re facing? This often applies directly to credit card companies and similar lenders.
This also though specifically applies to loans from financial institutions, regardless of the purpose you originally obtained the loan itself. In some cases, loans can be modified via negotiation or settlement. In others, a compromise based upon the original loan can be reached.
Consolidation of your debt is also an option, but it can be confusing to find a legitimate enterprise, as opposed to a consolidation scam. Having an advisor on your side is therefore key, so you can separate fact from fiction while actually producing the positive results which this course of action offers.
Keep in mind that the type of debt or obligation you’re facing will of course impact the range of potential non-bankruptcy resolutions you have at your disposal. Certain debts you cannot get rid of, even via bankruptcy, while others will be more difficult or perhaps impossible to change or negotiate.
Other debts are far easier to work with, in terms of both removing the obligation entirely via bankruptcy, as well as reaching non-bankruptcy resolutions. Keep in mind, that if a lender or creditor is faced with the prospect of getting nothing from you in return, i.e., bankruptcy, they will be willing to negotiate and compromise so they at least see something.
In all of these cases, that’s why it’s so essential to work with an experienced bankruptcy attorney who can guide you through the process, and has the skills and expertise to successfully maneuver these different debts, financial obligations, and the potential solutions which are available. This can make all of the difference between great financial relief without filing bankruptcy, versus filing bankruptcy. Before you take that plunge, speak with an attorney or legal representative in your local area who can provide you with some guidance.
Brian Tucci tirelessly represents his clients as a bankruptcy lawyer in Maryland. He offers experience, diligence, and dedication, along with affordable pricing.