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If you’re staring bankruptcy in the face you may think it’s your only option. It can be a bit scary to consider what needs done to file for it and also what the ramifications of that filing may be. However, there may be other alternatives for you when you consider filing.

Loan Modification

If you found yourself several months behind on paying your mortgage, you may be there for a variety of reasons. A job loss, interest rate rise, or other family issues all can lead to an inability to pay your mortgage payments and head toward a foreclosure or Chapter 7 or 13 bankruptcy. However, a loan modification may be an option for you to consider as an attempt to work with your bank. A loan modification can require a lot of work on the part of the borrower, but may prove to be exactly what you needed to avoid filing for bankruptcy.

Debt Settlement Plan With Your Creditors

Debt settlement may help lower your debt amount and avoid bankruptcy. This process is a way to pay a one-time sum that is usually less than the amount you owe in order to resolve your debt. Often, third party companies are utilized in this process to negotiate the settlement with your creditor. The debt settlement companies usually contact your creditors on your behalf and manage the negotiations for a better payment plan or a settlement to reduce your debt.

Each of these options comes with a long list of pros and cons and risks and benefits. If you are considering bankruptcy or trying to decide if a bankruptcy alternative might be right for you, contact George R. Belche. He can help you explore the pros and cons of each of your options and create a plan that works best for your particular situation.

George R. Belche, Attorney at Law