You Have Options: A Guide to Bankruptcy Alternatives
Bankruptcy can be an extremely intimidating prospect. Individuals are often concerned about the long-term effects it may have and wonder if it will really be effective for their situation. For many, bankruptcy is a last resort, and they would much rather use other alternatives that might be available.
While bankruptcy is widely understood, many people have not even heard of some of the alternatives available. The options available to you will often vary depending on your unique situation and the struggles that you are facing.
It is true that bankruptcy will halt all collection efforts against you, including harassing phone calls and other communications with creditors. However, there are other ways to accomplish this goal. You can use Michigan collection laws to help you. Sometimes asserting your rights under state law is enough to get the calls to stop. You can report creditor harassment to the Better Business Bureau or the Attorney General’s office. A demand to stop calls in writing can be extremely effective.
Working with Individual Creditors
Creditors will sometimes cooperate with you to negotiate different terms for your debts. You may be able to pay back over a longer period of time or get out of paying a portion of your interest. Some creditors may even agree to settle your debt for a fraction of what you owe. It never hurts to ask. If you can sell assets and offer this excess to creditors, that may be enough to avoid bankruptcy or at least delay it.
You may also be able to use a credit counseling agency to address some of these issues as well. Just be sure you are using a legitimate company that has a good reputation. Unfortunately, there are some phony credit or debt counseling companies out there that can take your money and do nothing to help your debts. If there are any red flags, move on.
If you have problems with budgeting, and that is triggering debt issues, you may want to consider going to local classes or seminars on budgeting. Certain financial advisors offer basic budgeting services for free or for a nominal fee. Getting your budget back in order can go a long way toward avoiding bankruptcy.
Getting Legal Help
Speaking with an attorney about your options under both state and federal law can help you determine if bankruptcy is the right option for you. Bankruptcy will not be the best choice for many people, but there are other steps that you can take to get your finances back on track. Contact Maxwell Dunn by calling 248-809-1395 for more information.