When facing mounting financial debt, bankruptcy may be a viable solution. However, filing a bankruptcy petition for Chapter 7 or Chapter 13 is likely one of the most important decisions an individual can make. Therefore, in determining whether bankruptcy is right for you, it may be wise to first consider other practical alternatives. Some common alternatives to bankruptcy include:
- Consolidate Your Debt
- Negotiate Your Debt
- Settle Your Debt for Less Than You Owe
- Obtain a Loan Modification
- Sell You Assets
- Take Out A Home Equity Loan
- Do Nothing
Consolidating Your Debt
Simply put, consolidating your debt is the process by which a single loan is obtained to pay off or “consolidate” other smaller loans or outstanding debts, such as credit cards, car loans, etc. At the Moak Law Firm, our Arizona bankruptcy attorneys can assist you in determining whether this option is appropriate for your financial situation.
Negotiating Your Debt
Negotiating a debt is the process by which a lawyer on your behalf, will “negotiate” more attractive terms of repayment for your debts with creditors. So for example, if you are delinquent on a debt such as a mortgage, it may be possible to negotiate with the lender for a loan modification to reduce your interest rate thereby reducing your monthly mortgage payments. At the Moak Law Firm, we have a track record of successfully negotiating with creditor/lenders, on behalf of our clients.
Settling Your Debt for Less Than You Owe
Essentially, this process involves an attorney who will negotiate to either reduce or completely eliminate the total amount you owe to a creditor. The experienced Arizona bankruptcy lawyers at the Moak Law Firm will evaluate your financial situation and may provide you with sensible debt settlement options.
Obtain a Loan Modification
Believe it or not, you may be able to get a loan modification. The rules on loan modifications are constantly changing. Speak with one of our Arizona Bankruptcy attorneys to find out it this is a realistic option for you.
However, if you have an overwhelming amount of debt obligations for which none of the alternatives to bankruptcy are suitable, it may be time to consider filing for bankruptcy. Bankruptcy can be a smart option for you when:
- You are up against a foreclosure
- You have too much unsecured debt, such as high credit card balances
- You are constantly being contacted by creditors and/or debt collectors
- You are facing a divorce
- You are unemployed
The Moak Law Firm can offer practical solutions for individuals facing financial distress. With our expertise in bankruptcy as well as successfully dealing with creditors, we can help you get a fresh start and back on the road to financial recovery.
Call 480-755-8000 to speak with our Arizona bankruptcy attorney today for immediate help.