Filing for bankruptcy protection is an option for everyone, at least in theory. You might not consider it a viable option for you, though, at least not now. The federal Bankruptcy Code sets minimum intervals between bankruptcy filings, so maybe it is not legally possible for you to file this year because you are still making payments on a Chapter 13 bankruptcy payment plan or because you filed for Chapter 7 bankruptcy several years ago.
Even if you have never filed for bankruptcy before, you might consider it a measure of last resort, and you are wise to think this way. What if you file for bankruptcy now, but things get worse next year, and you wish that you had waited instead of struggling for another few years while debts pile up, or worse, jeopardizing your current Chapter 13 case? You might be able to get the debt relief you need, or at least a good enough debt relief scenario, by pursuing alternatives that fall short of laying bare your financial distress in federal bankruptcy court. For help deciding whether to file for bankruptcy or whether you can cope with your debt without a bankruptcy filing, contact an Oakland Chapter 7 bankruptcy lawyer.
Take Out a Debt Consolidation Loan
Taking out a debt consolidation loan means taking on new debts to pay off old debts, but if you qualify for one, it is the easiest way to pay off credit card debt or medical bills. A debt consolidation loan is an unsecured personal loan with a low interest rate. Therefore, paying off the debt consolidation loan costs less than paying off the original debt. Of course, the better your credit score is, the easier it is to get a debt consolidation loan. If you do not qualify for one that will pay off your expensive debts or lower the amount of interest you pay for them, try looking for loans on peer-to-peer lending platforms since some of the lenders on these platforms will lend to people with a troubled borrowing history.
Settle With Your Creditors Outside of Court
Most creditors are willing to settle the debts you owe them for less than the face value amount that you owe. If you made payments for a while before stopping, they will probably at least break even on the principal amount. Even if they do not, they get more money by settling with you than they do by selling your debt to a collection agency for pennies on the dollar.
Withdraw Money From Your Retirement Savings
If you have retirement savings, you can withdraw money from them to pay debts. You should only do this if you have enough working years left to rebuild the savings before you retire or if the withdrawal amount plus the penalties leaves the balance at least as high as your contributions to the principal of the account.
Contact the Law Office of Melanie Tavare About Avoiding Bankruptcy
A debt relief lawyer can help you resolve your debts without filing for bankruptcy. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.
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