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August 13, 2014

What are My Alternatives to Bankruptcy?

Many people ask us abBankruptcy Alternativesout alternatives to bankruptcy, so we decided to take a look on the web to see what is out there.  We came across an interesting article entitled “What are my Alternatives to Bankruptcy?” on a bankruptcy site covering Chapter 7 and Chapter 13 filings in Dothan, Alabama.

First, the author suggests that before taking any steps toward legal action, you should first obtain your credit report from a credit bureau.  The three major credit bureaus are Equifax, Experian, and TransUnion and you can obtain free copies of your credit reports online at AnnualCreditReport.com.  Your credit report will include the names of your creditors, the names of any collection agencies used by those creditors and the amounts owed to each.

You may find that when all of your credit accounts are laid out in front of you, your debt situation may appear less overwhelming than you had originally anticipated.  You may find that by simply eliminating certain non-essentials from your budget, you will be able to pay off your debts and avoid bankruptcy entirely.

You also may be able to use the information from your credit reports to negotiate and set up your own payment plan with your creditor(s).  Of course, if you and your creditor both agree to an “informal” payment plan, it is highly recommended to confirm your agreement in writing.  Beware that in the negotiation process, creditors may want you to sign “consent judgments” or other legal documents that may waive some of your rights.  You should, of course, first speak with an attorney before signing any type of binding legal document or contract. [Read more...]