The first alternative to filing for bankruptcy would be to contact your creditors to arrange a payment plan. Most creditors are willing to work out some arrangement to repay the debt, so they are able to recover their money back. However, most often the creditors will want to be paid back in full. The best thing to do is be honest, and explain your situation, and that you would like to setup a new repayment arrangement and to see if the creditors would be willing to waive fees, interest and possibly principal.
An additional option to filing personal bankruptcy is debt negotiations. Your creditors may be prepared to either lower your interest rates, accept reduced payments, or both in an effort to settle a debt, whether temporarily or permanently. It is always a good idea to sit down and figure out a plan before contacting the creditor. Often times, if you are able to make a lump sum payment, creditors may be willing to settle the entire debt for 10 to 50 cents on the dollar.
If all attempts at working out a new payment arrangement with your creditors are not successful, another option would be a debt consolidation loan. A debt consolidation loan can pay off all your creditors, leaving you with just the debt consolidation loan payment. Quite often this requires good credit to qualify for and a low credit score an prohibit many debtors from obtaining.
Debt settlement is another possibility. Hedtke Law Firm can assist you by negotiating with a creditor to settle your debt if you enter a debt repayment plan. Normally, with these types of plans, you are required to deposit money each month with a credit counseling service, which then pays your creditors according to a repayment plan created by the credit counselor. However, sometimes the cost of the monthly payments can be beyond th ability of the debtor to pay depending on the amount of debt involved and the willingness of the creditor to accept less than the full amount owed.
To schedule a free consultation, please call Hedtke Law Firm today at our Upland office at : 909 579-2233 or Covina office: 626 521 5488 or Moreno Valley office at : 951 746 1722.