Bankruptcy is not right for everyone.  In fact, with the introduction of the new bankruptcy laws, many people are no longer eligible to file for Chapter 7 or Chapter 13.  Instead of filing for consumer bankruptcy, many people are starting to consider other options.  Below, we provide information on 3 common alternatives to bankruptcy:

Debt Consolidation
People who have multiple sources of debt and who are struggling to pay several bills each month may want to consider debt consolidation.  When people pursue debt consolidation, they will try to obtain a debt consolidation loan through an accredited financial institution.  Once the loan is obtained, the person’s debts will be compiled and the person’s creditors will be paid off.  The person will then be responsible for making one payment a month that will go toward the balance of his/her debt consolidation loan.

Debt Settlement
Another viable option for people who are having ongoing debt problems is the process of debt settlement.  People who wish to settle their debts will need to obtain the services of a skilled financial professional who can negotiate with creditors.  The primary aim of debt settlement is to negotiate with creditors to reduce balances the person owes.  Once this happens, people will make a single payment and his/her accounts will be closed.

Debt Management Counseling
When people wish to avoid consolidating or settling their debts, but would still like to reduce balances and get out of debt quickly, they should consider debt management counseling.  By working with a debt management professional, people can create feasible budgets and acquire tips on paying their bills, living within their means, saving money and rebuilding their credit.

There are many alternatives to bankruptcy that allow people to get out of debt in minimal time.  If you are interested in learning more, contact The Prescott Bankruptcy Law Firm today!