Alternatives to Filing BankruptcyAt Sno-Isle Bankruptcy I provide families and individuals throughout the north Puget Sound region of Washington State with guidance in considering various alternatives to bankruptcy. For most people who come to see me, bankruptcy represents the best way to deal with their financial problems. However, bankruptcy is not the only solution to consider. With that in mind, here are a few facts about some alternatives: Consumer Credit CounselingCredit counseling is a popular, legal, and ethical alternative to filing bankruptcy. Under this option, the counseling service will work with you to develop a payment plan, and then will work with your creditors to accept these payments to pay off your debts over time. Often, these plans will lower or eliminate interest. The primary benefit to these plans over filing bankruptcy is that you do not use up your once every 8 year Chapter 7 option. In addition, given the current economy, the bankruptcy safety net is useful and not to be thrown away lightly. The problem with these plans is that you still have to pay off all of the debts (often dragging out for 5-7 years), yet you do not see a benefit to your credit from doing so. Counseling often damages your credit worse than bankruptcy and punishes you for longer. So, you are out all of the money, living hand to mouth for years, and still suffering the detrimental credit consequences. Also, please be aware that some counseling agencies are in trouble with the Federal Trade Commission and the Internal Revenue Service for making unrealistic promises to their clients, so please check out these agencies and their services carefully. Debt Settlement ServicesUnlike credit counseling, debt settlement will lower the amount owed on your debts through negotiation. By doing this, you can pay off your debts at less than full value. The catch is you need to come up with the money quickly. This service is useful if you have equity in a home or retirement account, but not if you are living paycheck-to-paycheck. There are a lot of companies offering this service, but many are scams that will take your money and run or charge fees so high that you would be better off negotiating yourself. Also, keep in mind that debt settlement, like credit counseling, will usually hurt your credit as much as a bankruptcy action even though you just depleted your assets to pay the debts (as opposed to keeping them in bankruptcy). Debt Workout AgreementsThis is a combination of credit counseling and debt settlement. An agency or attorney will seek to lower debts and allow payments over time. In workout agreements, the debts will be lowered by less than debt settlement and the payments are quicker than credit counseling. This can be useful for people expecting money soon such as an inheritance or a large bonus or commission.In My Experience…Keep in mind that we deal in bankruptcy actions every day. And, as the old saying goes, when you use a hammer all day, every problem begins to look like a nail. So, conceding that our practice is dedicated almost exclusively to bankruptcy-related services, there is a good chance that you are here looking at our website because the status quo is no longer working for you. We have yet to hear a good explanation regarding why you should pay your debts by draining your assets or living hand to mouth if your creditors are going to punish you in the same way or worse than if you filed for bankruptcy. If the creditors or Congress wanted you to not file, they would change the credit system to reward your efforts, not punish them. So, unless you can think of a better reason, we suggest you take a serious look at the option that allows you to move on with your life the quickest and gets you the best results for starting over. Bankruptcy is your right, and you deserve a fresh start. If you are interested in filing bankruptcy, we can help. Get started by contacting a dedicated Seattle area bankruptcy lawyer at Sno-Isle Bankruptcy today. Call Toll Free at 1-877-570-5588 Free Attorney Consultation
Stephen Garvey |
Sno-Isle Bankruptcy is a Debt Relief Agency that helps people overcome their debt problems through the legal tools available to all Americans. This includes helping people file for bankruptcy protection.
