Is Filing Bankruptcy My Only Option?

Many people think that filing bankruptcy is their only option when it comes to getting out of tremendous debt. You actually have quite a few alternatives. Many people don’t realize that erasing your debts by filing bankruptcy can sometimes lead to more headaches once the whole ordeal is over. Lets take a look at some other ways you can handle your out of control debt.

Sometimes people just want to stop the harassing calls they receive from bill collectors. Bill collectors have rules just like everyone else and they must never cross the line. However, sometimes they do just that and think they can do anything they please to pressure you into getting this debt resolved. If a debt collector is using profanity or calling you at unreasonable hours of the day then you should document these activities and report them to the FTC. Many times they will immediately rectify this with the debt collectors and you may even get your debt canceled if they are persistently harassing you.

Try negotiating with the creditor. If you show interest that you want to settle this debt quickly and are not avoiding the problem the creditor may settle with you for less than you owe. This only works if you have assets that you are willing to sell, or are receiving some income to pay them. Many times working with your creditor to settle the debt is the best way to avoid filing bankruptcy.

Discuss your debt with a credit counselor if you feel that you are not making any progress on your own. There are many nonprofit debt counselors that will help you repay your debts within a specific amount of time. This could mean that you are consolidating your debt into one payment that is divided amongst all the people you owe money to. Many people appreciate debt consolidation because then you don’t have to make sure that all of your payments are being received on time, since you are making one payment to one agency that is responsible for dispersing the money. This is an excellent alternative to bankruptcy if you have some money to work with.

If you are living a simple life with very little to no assets, you may also choose to do nothing at all. If this is the case with you then you are known as “judgment proof.” Regardless of how much you owe, they cannot collect basic necessities of living. They cannot take the basic living essentials like clothing, ordinary household furnishings. In several years the debt will come off your credit record and will be legally uncollectible.

There are many different options besides bankruptcy and one may be the best route for you. If you are not sure if you should file bankruptcy then please contact a nonprofit credit counselor and discuss any other options that are available to you. Remember that there are other options to your debt problems.