Alternatives to bankruptcy
Do you have a difficult financial situation you may be considering bankruptcy but also you will want to consider alternatives to bankruptcy. When you are searching for alternatives to file bankruptcy or ways to avoid filing bankruptcy is sometimes helpful to do Internet research.
Some people, even self-proclaimed finance gurus, will tell you that bankruptcy is a negative event, ranking right up there with divorce, illness, disability and loss of a loved one. I read recently that one a well-known anti-bankruptcy guru claims that bankruptcy “leaves deep wounds in both your psyche and your credit report.” With all due respect, the nearly 30 years of experience I have had in this area prove otherwise.
Nevertheless, I agree that filing bankruptcy is a serious matter and that finding alternatives to filing bankruptcy should be part of the process of analysis that anyone goes through in determining what option is best suited to deal with serious financial problems.
Alternatives to filing bankruptcy are sometimes the first thing that you should explore.
However, you need to consider the source of your information along with the information itself to determine whether it makes sense to you.
For example, one article I have read on alternatives to bankruptcy is that you should sell your property before filing bankruptcy. The reasoning behind this is based on the incorrect assertion that trustees in bankruptcy will take your property and sell it to pay your creditors. This almost never happens. In fact, it is absolutely wrong to sell your property to pay creditors when you can protect your property in a bankruptcy and pay your creditors nothing. This sort of advice is extremely damaging and incorrect.
Another bit of advice is to settle your debts. Well, that might work in some cases as an alternative to bankruptcy but if you do not have any money to settle your debts, it is pretty useless advice.
Another bit of “advice” I read in an article on alternatives to bankruptcy is that you should borrow money from friends and families. This is exactly what your creditors hope you will do. All you’re going to do if you borrow money from friends or family is trading one debt out for another. Except that owing your friends and family instead of normal creditors often strains and sometimes irreparably damages your relations with them. Again, a bad idea.
I could go on and on but the point of this discussion is simple: one-size-fits-all advice to people looking for alternatives to bankruptcy doesn’t work. There is simply no substitute for a meeting with a seasoned and experienced, multiple certified debt relief specialist. That’s the only way you’re going to be able to determine whether or not there are alternatives to bankruptcy that make sense for you or whether or not you should be determining which kind of bankruptcy to file.
Because I am a certified credit counselor, certified debt arbitrator, certified student loan counselor and board certified consumer bankruptcy specialist, I can help you compare all options and determine if alternatives to bankruptcy exist for your situation and if so, what is the best one to choose.