Bankruptcy Is Not Always Your Only Way Out of Debt


A man in suit and tie with his arms crossed.

By: Robert J. Nahoum

THE PROBLEM:

Post Covid, rising inflation and a tricky jobs market have all left you behind on debt.  Perhaps you lost your job during Covid and relied on your credit cards to get you through.  Now rising inflation has made everything more expensive including your credit card bills and you just can’t catch up.  Most Google searches for problems like this will reveal content from bankruptcy lawyers telling you that bankruptcy is your way out.  Bankruptcy lawyers are like hammers where everything looks like a nail.  While bankruptcy may seem like the only solution for those struggling with overwhelming debt, there are actually several other options available.

CONSIDERATIONS:

Here are some alternatives to consider before filing for bankruptcy:

Negotiate with creditors: Many creditors are willing to negotiate payment plans or settle debts for less than the full amount owed. It’s worth reaching out to creditors to see if they’re willing to work with you to develop a repayment plan that fits within your budget.

Credit counseling: Non-profit credit counseling agencies can help you create a budget and develop a debt management plan. They can also negotiate with creditors on your behalf to lower interest rates and waive fees.

DIY debt repayment: If you have the discipline and organization skills, you can tackle your debt on your own by creating a budget, prioritizing debt repayment, and making extra payments whenever possible. This can be challenging, but it’s a viable option for those who are committed to becoming debt-free.

It’s important to note that while bankruptcy can provide relief from overwhelming debt, it also has serious consequences, including further damage to your credit score, potential loss of assets, and difficulty obtaining credit in the future. Before deciding to file for bankruptcy, it’s important to explore all your options and consult with a reputable bankruptcy attorney.

For those with consumer debt, bankruptcy is not the only solution. There are several other options available, including negotiating with creditors, credit counseling, and DIY debt repayment. By exploring all your options and choosing the approach that works best for your situation, you can take control of your finances and work towards becoming debt-free.

If you need help settling or defending a debt collection law suit contact us today to see what we can do for you.

The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202
www.nahoumlaw.com

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