What Are Alternatives To Bankruptcy?
When struggling with massive and overwhelming debt, it can be hard to imagine ever being on the other side. Though bankruptcy can be the answer to recovering from debt, it does not come without its own challenges and drawbacks that doesn’t always make it the right choice for everyone. Luckily, there are alternatives to bankruptcy. Take a look at an overview of the most common alternatives to filing bankruptcy:
- Working out a Payment Plan
- Most creditors are happy to see some money being paid back, rather than no money. By proactively approaching your creditors to discuss your current financial struggle, they may be willing to work with you.
- Debt Consolidation Loan
- This option involves securing a new loan for the total amount owed to creditors. The loan is used to pay off the creditors to avoid raking up multiple late fees, and penalties for missed payments. After the creditors are paid, you are left responsible for one single loan.
- Nevada Credit Counseling Plan
- When utilizing a credit counseling service, all your debts to various creditors get combined into a repayment plan. As you contribute to the plan monthly, the payments are distributed to each of the creditors. Creditors generally see this as a proactive attempt in resolving debt and therefore sometimes accept lowered payments or reduced interest rates.
- Doing Nothing
- In some situations, doing nothing about resolving your debt can be the right choice. If the individual has only few assets and little income, they might not have enough worth creditors coming for. Read more about doing nothing vs. filing bankruptcy.
Everyone’s financial situation is unique, therefore just because bankruptcy or another option may be right for one person does not mean it’s right for all. When considering your debt relief options, it’s important to weigh all pros/cons, and understand the implications of each path. Speak with an experienced bankruptcy attorney to help discuss which option might be best for you. To set up a meeting with our team contact our office at (702) 998-1188, firstname.lastname@example.org, or schedule a consultation online.