If you are facing a financial crisis, filing for bankruptcy is not the only solution. There are many alternative options to solve your debt problems, but these are always better reviewed with an experience Cleveland bankruptcy attorney who will be able to offer you the best advice based on your specific situation. Getting out of debt is not easy. Filing for bankruptcy for some is their first choice and for others a last resort, as it allows others to have a role in determining how your financial situation will be handled. Filing for bankruptcy is often a solution for individuals who have debts so large they are completely unmanageable.
The following are ways in which you can attempt to resolve your debt with your creditors:
Ways to resolve your debt yourself:
- Contact your creditors or debt collectors yourself.
- Use a credit counseling agency to manage your debt.
- Use an attorney to help you work out a debt settlement with your creditors.
- Fight your disputed in debts in court
Alternative Options over Filling Bankruptcy
- Contact your creditors or debt collectors yourself. Once you have reached them via phone or letter, explain your financial situation and discuss payment plan options. While speaking with them, inquire whether any of your debts or payments can be reduced. You may also be able to negotiate a lower interest rate or a principal, debt forgiveness, or a longer period to make payments. Creditors are often willing to settle for partial payment because receiving some form of payment is better than writing off your debt as a total loss.
- Use a credit counseling agency to manage your debt. Credit counseling services work with creditors and lenders on your behalf to resolve your debt problems. They can assist in developing debt management and repayment plans, debt education, or referring you to another agency. If you decide to use a credit counseling agency, it is important to know that they may charge you for their services. This can often be costly as well as unsuccessful in resolving your financial problems. Some are even scams. Most of the TV and radio commercials you hear on TV and the radio are scams – they will claim to resolve your debt problems for basically nothing. Be on the lookout for things that sounds too good to be true and consult and an attorney to verify that the company is legitimate.
- Use a Cleveland bankruptcy attorney to help you work out a debt settlement with your creditors. You will likely pay a lot less than going through a debt settlement or credit counseling agency, who may not even be able to work out a settlement arrangement.
- Fight your disputed in debts in court. If you have been sued for a debt that you do not think you owe, you can pursue legal action in defense. Oftentimes, legal representation can be costly, so this is when you will want to decide if it is worth the investment.