Exploring Your Bankruptcy Alternatives

Most of the time, when people consult an attorney, their main question is – Is filing for bankruptcy the last resort? Making a decision that you should go bankrupt is simply not a straightforward option, even though it is a good choice in financial terms. Let’s review your situation. You may not be needing the help of lawyers like Krispen Culbertson after all once you have reviewed other alternatives available to you.

Performing a Debt Evaluation

There are a great number of things to consider, both personal and financial. To begin with, here are three questions you should ask yourself. How much do you owe, who do you owe? What assets do you have that you can liquidate? What are your monthly earnings and how do you spend it? How does your budget seem like?

Are you currently faced with a wage garnishment or any type of legal issue that may result in some pressure? Are you married with kids? This may affect your financial situation.

Review Your Bankruptcy Options

To help you decide if bankruptcy is for you, it helps to check on other alternatives before filing for bankruptcy. It’s not just getting another loan, it is consolidating debts or other options can help you after evaluation.

Prepare a budget and cut down on expenses. Have you considered applying for a debt consolidation loan?

“Debt consolidation is a type of debt refinancing that allows consumers to pay off other debts. In general, debt consolidation entails rolling several unsecured debts, such as credit cards, personal loans or medical bills, into one single bill that’s paid off with a loan. There are dozens of ways to do this, and some include transferring debt to a zero or low-interest credit card, taking out a debt consolidation loan, applying for a home equity loan or paying back your debt through a debt repayment plan.” — Credit.com

Debt management plan. If preparing a wise budget doesn’t work, or if debt consolidation has not been approved, the debt management plan could be the one for you. Consult with a credit counselor.

“A Debt Management Plan (DMP) is an affordable debt relief option where credit.org’s financial coaches work with you and your creditors to create a realistic monthly payment plan, stop collection calls, minimize fees, and help you pay debt off more efficiently.” — Credit.org

Consumer Proposal. If the first two options don’t work, consider getting a consumer proposal.

“A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, the LIT will work with you to develop a “proposal”—an offer to pay creditors a percentage of what is owed to them or extend the time you have to pay off the debts, or both. The term of a consumer proposal cannot exceed five years.” — ic.gc.ca

You can be guided to other solutions to your financial situation. Consult with a Licensed Insolvency Trustee first before consulting a bankruptcy attorney.