Alternatives to Bankruptcy

Not Ready to File for Bankruptcy? You May Have Options.

Are you battling overwhelming debt? If so, you may be thinking that you’ve run out of options. Bankruptcy may seem inevitable as you struggle to afford basic living expenses, but it’s important to remember that bankruptcy is not always the answer. While this process can be highly beneficial for some, it is not a “one size fits all” solution to debt. For this reason, it would be in your best interest to discuss your case with a Phoenix bankruptcy attorney before making any decisions about the future.

Leonard V. Sominsky, ESQ., PC has been helping debtors since 2000. In this time, he has handled more than 1,000 bankruptcy cases. You can trust that your future will be in capable hands when you turn to our firm for guidance, so don’t wait to give us a call. Mr. Sominsky returns all calls within 24 to 48 hours. He also offers free, one-hour consultations so you would have nothing to lose by taking the first step today.


Options for Avoiding Bankruptcy


Bankruptcy Alternative #1: Debt Settlement

In some cases, you may be able to negotiate with your creditors to repay your debts at a lower rate. This process is called debt settlement. While this may not be an option in every case, most creditors will be willing to work with you if they know that they will get their money back – even if it’s not the full amount. This could save you money and spare you the hassle of having to file for bankruptcy.

Bankruptcy Alternative #2: Debt Consolidation

Is it becoming hard for you to keep track of your debts? If so, you may benefit from a process known as debt consolidation. This eliminates the hassle of having to repay several different creditors by consolidating all of your debts into a single loan with one monthly payment and a lower interest rate. Find out if this option is right for you by speaking to our Phoenix bankruptcy lawyer today.

Bankruptcy Alternative #3: Liquidating Assets

If you decide to file for Chapter 7 bankruptcy, you may not be able to choose which assets you keep and which assets you liquidate. If you have a car that you could sell for some quick cash or some stocks that have acquired value, however, you may be able to skip this step. As long as you are ready to part with at least a few of your assets, you could repay a portion of your debt without the need for bankruptcy.

Bankruptcy Alternative #4: Credit Counseling

If you want to avoid filing for bankruptcy, a solid option is a credit counseling plan. Similar in structure to Chapter 13 bankruptcy, this process involves creating a plan for repayment with your creditors. In many cases, creditors are willing to lower interest rates and accept reduced payment plans, so long as they are getting some of their money back and getting it back sooner rather than later. With these types of plans, you will typically pay an agreed upon amount each month to go towards paying off creditors. In many cases, the agreements require that you don’t apply for or try to use any credit during this program.

Bankruptcy Alternative #5: Loan Modifications

Similar to the other alternatives, loan modifications involve negotiating a new loan agreement with your creditors. This can be beneficial when a majority of your debt is coming from a home, car, or other large payment. This can also be a very helpful way to avoid foreclosure. When your main reason to file bankruptcy is to prevent foreclosing on your home, you may want to consider loan modification first.

Contact Our Phoenix Bankruptcy Lawyers Today

Dealing with debt isn’t always easy—especially if you are trying to tackle this problem on your own. Fortunately, help is just a phone call away. Leonard V. Sominsky, ESQ., PC can put more than 15 years of experience to work for you as soon as you contact our firm. We have already helped more than 1,000 debtors, and we are ready to do the same for you. Call today to schedule your free, one-hour consultation.

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