Bankruptcy Alternatives

For many people, bankruptcy is a good and smart option for how to deal with a financial situation. In most cases, it is advantageous for the filer and can help get them back on their feet or can resolve a complicated issue. There are, however, some alternatives that may fit a given situation:

Negotiation and settlement. This is an especially attractive option for people whose financial problems are temporary. Negotiating directly with creditors can sometimes result in having outstanding debts rolled back into existing loans or mortgages to delay payment until times are better. This can be a good course of action for businesses.

Debt settlement/work out agreements. These are often very effective methods of lowering the actual amount owed, through negotiating agreements, but they typically require balances to be paid relatively quickly. This can be helpful for people who have equity that can be liquidated, but is probably not a great option for people who do not have large assets.

Take no action. For some people who have very small amounts of income or assets, they can be protected from legal action because they have so little. These people are considered “judgment proof,” because a court is unlikely to force them to pay their debts, as they would have no possessions that could be legally taken as payment.

Contact Us

Although there are some alternatives to bankruptcy, filing for bankruptcy is very often the best option. For help determining the best course of action for your specific situation, contact the Boca Raton bankruptcy attorneys of Eric N. Klein & Associates, P.A. at 561-353-2800.