Alternatives to Bankruptcy
Finding the Best Solution for You
If you are struggling to find a way to get a handle on your debts, you should know there are options available to you other than filing for bankruptcy. While filing for bankruptcy is a viable option for some people, you need to determine what all of your options are and make a decision based on what is best for you. An experienced bankruptcy attorney at Jacoby & Jacoby can meet with you to review your situation to discuss which alternatives to bankruptcy would best suit your needs. If filing for bankruptcy turns out to be the best solution to resolving your debts, you can rest assured the attorneys at Jacoby & Jacoby will provide you with the experienced legal guidance you need throughout
the bankruptcy process. However, there may be alternatives to bankruptcy you should not hesitate to take advantage of if they are better suited for your particular situation.
Common Alternatives to Bankruptcy in New York
There are a number of possible alternatives to bankruptcy you can discuss with a bankruptcy lawyer at Jacoby & Jacoby:
Credit Counseling: Credit counseling is required for anyone filing for
Chapter 7 or
Chapter 13 bankruptcy. When you participate in a credit agency's debt management program, the agency will help you come up with a payment plan to repay your creditors. This is similar to the payment plan you may experience if you proceed forward with the Chapter 13 bankruptcy process. An advantage to a repayment plan through a credit agency is that a bankruptcy will not appear on your credit report. The disadvantage is that it does not protect you from
creditor harassment if you were to accidently miss a payment.
- Debt Consolidation: Debt consolidation works by consolidating all of your debts into one large loan. Instead of repaying multiple creditors, you now only have to make payments towards the one creditor who issued the large loan.
- Debt Settlement: Debt settlement works by negotiating with your creditors. A debtor and his/her representative can negotiate with the creditors for a payment amount that is less than what is actually owed. The reason creditors agree to this is because they'd rather get paid some of the money they are owed rather than nothing at all. If you file for bankruptcy, it could take much longer for them to get their money.