Our bankruptcy law firm in Evansville offers sound advice

If you are suffering financial hardship—such as losing your job or business or having large medical bills to pay—you should consider alternatives to bankruptcy.  A bankruptcy filing is a serious matter that should not be taken lightly.  Under bankruptcy protection, you can lose some of your personal property and encounter trouble in securing loans in the future.  There are ways to avoid filing for bankruptcy, and with good advice from the bankruptcy attorneys in Evansville at Dunlap & Nesmith, you may find other ways to resolve your financial trouble.

Alternatives to bankruptcy

Below are some alternative approaches to a bankruptcy filing:

  • Debt reduction is a program you can discuss with your creditors.  If you cannot make the minimum payments on your debt, your creditor may be willing to discuss a debt settlement under which you guarantee payment of a portion of the debt (usually the principal plus some interest) in return for reduction of the overall amount owed.  Some creditors will find this attractive because they can recover some of the debt you owe, rather than gain nothing if you file bankruptcy.  A debt settlement can reduce overall debt by 40 to 60 percent.  Our Evansville bankruptcy attorneys may be able to help you with these negotiations.
  • Debt consolidation is a program whereby you agree to make monthly payments with reduced interest.  It consolidates your bills into a single affordable payment and may reduce or eliminate late fees and other charges.  Consolidation can be a faster path to clearing your credit history than other alternatives.
  • Debt management is a program under which a credit counseling agency works with you to develop a plan to pay your bills on time by reducing interest rates and reducing or eliminating fees.  The plan is designed to get you out of debt as quickly as possible without bankruptcy.
  • Payday loan consolidation is a plan by which you consolidate multiple payday loans into an affordable monthly payment.  This can allow you to repay outstanding loans without being overwhelmed by unaffordable payments.
  • Do-it-yourself plan is an approach whereby you negotiate with creditors to set up affordable monthly payments for each.  This requires careful financial analysis and planning so you can afford to make the payments and still have enough cash to meet living expenses.