Bankruptcy

Alternatives To Bankruptcy – What Are My Options?

By
David F. Mills
on
June 30, 2021

If you’re thinking of working with a Smithfield bankruptcy attorney to file bankruptcy, you may be wondering if there are any other options to resolve your situation. Bankruptcy can be complex, so it’s in your best interest to explore alternatives before hiring a bankruptcy lawyer in Smithfield from Narron Wenzel, P.A. Below are just a few alternatives to bankruptcy that might be right for your situation.

If you’re thinking of working with a Smithfield bankruptcy attorney to file bankruptcy, you may be wondering if there are any other options to resolve your situation. Bankruptcy can be complex, so it’s in your best interest to explore alternatives before hiring a bankruptcy lawyer in Smithfield from Narron Wenzel, P.A. Below are just a few alternatives to bankruptcy that might be right for your situation.

1. Debt Settlement

If you have multiple debts that are in default (unpaid and have been sent to collections) you may be able to contact the debt holder and negotiate a debt settlement. Collections agencies are often willing to settle for a partial payment and write off your debt.

2. Debt Consolidation And/Or Refinancing

If you have lots of consumer debt like credit cards, you may be able to take out a single loan at a lower interest rate, then use this money to pay down high interest rate debt. This is known as “debt consolidation.”

In addition, you may be able to refinance your mortgage if you own a home and have good credit. Getting a lower interest rate or extending your mortgage repayment can reduce your monthly payments and make it easier to repay what you owe.

3. Overhaul Your Budget & Lifestyle

Make a household budget and examine your expenses and lifestyle. Can you sell one of your cars? Can you cook more and go out to eat less? Can you find a cheaper cell phone service provider?

If you are diligent about reducing your costs and you overhaul your budget, you may be able to find some extra money that you can use to pay down your debts and avoid bankruptcy. It may require some sacrifices, but avoiding bankruptcy is always a good thing.

4. Sell Assets To Cover Debts

If you are in serious debt, you may want to consider selling some of your assets to cover your debts. Things like cars, motorcycles, boats, valuable collections, artwork, electronics, and other items may be used to pay down debt. Then, as you pay off individual debts by selling assets, you’ll free up more monthly cash flow to go toward your other debts. 

5. Earn Extra Income

Working a second job or starting a “side hustle” will provide you with more income and may be enough to avoid bankruptcy. It may not be pleasant to work two jobs, but if you can earn enough to stay afloat and avoid bankruptcy, it may be worth it. Alternatively, you could request a raise at work, or seek another job with better compensation and benefits.

Consult With A Lawyer To See If Bankruptcy Is Right For You 

If you’re not sure whether you need to file bankruptcy, the best way to find out is by scheduling a consultation with a Smithfield bankruptcy attorney at Narron Wenzel, P.A. An attorney can discuss your finances, your debts, and your situation, and help you decide if bankruptcy is the best option. Contact us online or give Narron Wenzel, P.A. a call to schedule an appointment today.

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