Bankruptcy Alternatives (2)

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Bankruptcy Alternatives Abound to Offer Solutions for the Financially Hard pressed

With the options that are out there for customers as bankruptcy alternatives, filing can now be a last vacation resort. There are a number of ways that the financially pressed may go about avoiding exactly what used to be the inescapable of going belly up. Sometimes it will pay to renegotiate secured loans such as auto, boat, and mortgage loans. The result of the negotiation really depends upon the willingness and ability of the creditor to work with the debtor. In some conditions they can offer a lower interest rate or more compact, more manageable obligations. This is especially true of credit card financial debt. It is in the interest of the consumer who is financially up against that to inquire about lowering rates of interest, payments, and if everything else fails ask for a negotiation. Some will be willing to stay for mere cents on the dollar.

The particular bankruptcy alternatives floating around within the financial world today are growing by leaps and bounds. Consumer credit counseling that offers their solutions free of charge is a great choice for those that find themselves ended up squarely in this situation. A company that provides this type of service has the negotiation expertise to work with many creditors on several different ranges. They know what to require as far as fair monthly obligations and lower interest rates are involved. Also, they have the particular expertise to know the particular lingo necessary to acquire what you need from the creditor. They know \”buzz words\” that will let them have the right rapport together with creditors. However, look for out any consumer credit counseling agency prior to doing business with them.

Sometimes buyers feel their best suggest is themselves. They could explore bankruptcy alternatives independently. If there is a family member along with good credit who really really wants to help the consumer she or he may be able to get a loan to aid payoff consumer financial obligations. If this is not an option customers may set about overlooking the bills and viewing if creditors can easily stretch the payments being paid off within an designated period of time. Some lenders may allow the customer to defer obligations for a certain amount of time.

Comments: 26

  1. Granville January 26, 2013 at 2:31 pm Reply

    Please also provide the alternate solution if there’s an adverse effect of northwest entrance.

  2. Erika March 30, 2013 at 7:32 am Reply

    I need to consolidate my debt or pay it off and the best source to do this with that I can think of is my 401k. What kind of penalties do they place on you for withdrawing from it. I only want to take about $3000 or so. I am a single mom with 2 kids, would this effect my tax return a bunch next year? If it is too risky, what alternative should I use to get out of debt?

  3. Corinna April 6, 2013 at 4:13 pm Reply

    I had a vehicle repossessed. I purchased the car in Virginia. I moved to Massachusetts where the vehicle was then voluntarily repossessed. Approximately 2 years after this incident my bank account was frozen for the funds I still owed on the car. I have not opened a bank account for fear that this would follow me forever. It is almost 2 years after the bank account was frozen. Will this ever go away? I looked into the statute of limitations but, am a little confused. Does anyone know?

  4. Jayne June 3, 2013 at 11:08 pm Reply

    I am not for universal health care, but I think there needs to be change in the current system. This is pretty simple and i know business owners will disagree, but what are your thoughts? Have all employers offer health insurance and cover 25% percent of the cost, but be able to right off the cost at the end of the year. Everyone is required to have health insurance, and if you don’t you do not receice treatment. I realize the people who can not work will still have to be covered by the government, but most people are employed. what are your thoughts on this? Do you think it would work?

  5. Micah June 25, 2013 at 11:12 pm Reply

    Okay, two answers I don’t need:

    1. “Dedication and commitment”. I’ve already got them, and I’ve been working steadfastly over the past year, contributing all that I can to my payments. I’ve eliminated all spending from my life that I possibly can. Now I need to find how I can accelerate the payoff.

    2. Smart-ass responses. I’m genuinely asking for tips or tricks that have worked for others. (i.e., good ways of increasing income, companies that can help reduce debt, etc.)

    I’ve been in a debt whirlpool for the past 3 years because I was never educated against it. Now I’m trying to crawl back out of this hole.

    Any more tips I might have missed? (-and yes, I am a homeowner, but I’ve only owned it since November of ’05)

    Thanks…

  6. Felecia July 2, 2013 at 6:40 am Reply

    I am about $2,000 in credit card debt. It may seem like a little but these people are harrassing me. They have already levied my bank account for about $500.00.

  7. Eugena July 10, 2013 at 12:22 am Reply

    I know student loans are to be permanent until repaid, but I thought, perhaps, there may be a loop hole since this one was procured through a private bank.

  8. Collin July 10, 2013 at 4:49 am Reply

    It’s on the news all the time about it affecting Britains economy, but what effect has it had on us? I haven’t noticed any- other than low interest rates meaning mortgages, loans, etc. are been payed off faster

  9. Myron August 3, 2013 at 11:29 am Reply

    Okay let’s start from the beginning. With the dying job market there will be a increased interest in alternative ways to make money for the average American. The option most Americans will probably be looking toward will be new/small businesses. The government’s red tape combined with the competition makes it virtually impossible for a new business to survive. If the government were to lessen their control over small businesses by means of zoning laws, permits, inspection costs, and taxes, the possibility of creating a new business would become a more viable option for mainstream Americans. Though American should not expect to become super rich, rather instead hope to make enough to replace the income they lost.

    For the business that don’t just survive but rather thrive this would increase the amount of jobs available for those who can’t handle their own business. For when a business grows to a certain size the government should create a new type of government job. This new position is one that people are trained in the fields of economic decision making and smart business planning. Once a business grows to the point where it employs say 1000 people, a person trained for this position is sent by the government to monitor and advise the company and find the best ways for the company to not go under, preventing the loss of jobs to many Americans. Though this person has no actual power and is strictly an advisor.

    When a company grows to ten times this size (10,000 employees) a higher ranking government employee, with a higher level of training comes in. This government employee has more power than the previous. This one has voting power of ten percent of the company, and also has the authority to release information about the companies decision making to the government and recommend whether the government should intervene more with the company.

    If the previous government employee recommends more government intervention and the government’s review of information provided is reasonable enough then the government should launch an investigation into the company and it past business practices. If it turns out that the company is at risk of going under or outsourcing then the government should create a list of possibilities for preventing the loss of American jobs and sit down with the company owner(s)/ Executive officers and attempt to determine a viable option.

    If a viable option can be reached and the owner(s)/ Executive officers refuse to take it then the company must pay 50% of the salary to all employees that are to be laid off until they are able to find another position paying more than 60 % of their previous income, or pay for the employee to be retrained in the field of the employees choice. If no viable option can be found then there is no way that it may be prevented and therefore will be no penalty as long as the company gives adequate notice to its employees and stockholders.

    I believe this is a very fair way government could get companies to compromise on what’s best for the company as well as what’s best for the employees. And therefore best for the economy. What do you think?
    You don’t have to read this^^^^ If you don’t want to, just tell me you plan instead.

  10. Cody December 3, 2013 at 1:56 pm Reply

    A friend of mine is thinking declaring bankruptcy as an option to start over..I don’t know anything about it except that it stays on your record for 10 years..How fast can one recover and start over?

  11. Les December 23, 2013 at 2:52 am Reply

    Looking for a career change and would like to know what is new an profitable in a bigger/more innovative market.

  12. Tristan December 23, 2013 at 7:45 am Reply

    I’ve had a bankruptcy due to being off work for an extended time because of health issues, now I’m returning to work. I’m interested in purchasing another home, but 1 my bankrupcy obviously 2. I want something that is less upkeep, and I think this would be more reasonable. However I live in tornado alley, my friend said they have tie downs and things they can do to secure things now.

    Recommendations please.

  13. Woodrow January 3, 2014 at 10:47 pm Reply

    I do not know much about bankruptcy laws & was hoping someone could answer a few questions. There are a few bills/debts that I really don’t want to include in the filing cause I don’t want to lose the properties – House & car – is that possible to exclude or not lose things in the process? What are the qualifications for being able to file? If most of the debt we need to lose is credit card debt – is this the best help out there? Any other Helpful & serious suggestions would be appreciated.

  14. Josephina February 3, 2014 at 1:29 am Reply

    I am not sure if I even qualify… Here’s the scoop-
    My husband and I lived in California but moved to Kansas City, MO in January. I haven’t been able to get a job. I am pregnant and starting to show. Although it is illegal, it makes it even harder for me to get a job. California we were making 5k a month. In Missouri my husband is only making 1800 a month. The significant price difference is affecting us. I have 6 credit card payments adding up to exactly $325 a month. 2 Car payments adding up to $645.00. Since they are under loan we have to pay 270.00 a month for insurance. Rent 529. Utilities… Food/gas. Basically, 1800 a month don’t cut it.

    Even if there were alternatives to claiming bankruptcy, I’d like to hear about them.
    It adds up to $30,000

  15. Jolanda February 14, 2014 at 11:53 am Reply

    I want something thats the same in concept. A safe investment that’ll give you a decent return. Just checking out my options.

  16. Albert February 21, 2014 at 10:25 pm Reply

    My bankruptcy was discharged just about a year ago and I did NOT reaffirm my mortgage. Im simply maintaing my mortgage payments. I now have myself in a situation where I can no longer afford to make my payments. What are my options of getting out of my house? Can I just move out? Selling and Refinacing are not an option at this point. Knowledgable people on this subject only reply please. Thank you.

  17. Domingo February 21, 2014 at 11:15 pm Reply

    I know you have to do the ‘ticket in’ as one of the new California laws but do you have to be in collections before you can do the ticket in?
    And after doing the ticket in do we have to wait an entire 6 months before filing chapter 7?
    Are there any links that I can access with this information?
    I’ll greatly appreciate any help I can get concerning this matter.
    Thank You Gillian.
    Unfortunately we don’t have any other alternative.
    Thanks to the housing market.

  18. Colin February 21, 2014 at 11:15 pm Reply

    I have a few qustions regarding chapter 7 bankruptcy – not sure if anyone would know the answers to any of them. I haven’t filed yet but it is a consideration.

    1. I bought a new car last year – my father is the primary on the loan and i am the cosigner – how does this affect his credit? I am current on payments and will continue to be current.

    2. My ex husband and I bought a house together when we were married. I am the primary on mortgage and he is second. In the divorce he got the house and modified the mortgage based on his income. If I file will that mess up anything with him?

    3. I am an authorized user on my fathers credit card although I haven’t used it in years – will my filing affect this on his credit report?

    4. I am in desperate need of a new bed – if I buy one before I file will this have any affect on the filing (not buying with credit – paying outright).

    THanks for your help. I hate the idea of filing bankruptcy but Im now being sued because a creditor won’t work with me for a manageable payment plan (they want more than I make in a month). If anyone has any other alternatives I would appreciate that too.

  19. Leonardo February 21, 2014 at 11:15 pm Reply

    Brief background: Moved from one state to another for a job, which was lost. Income has dropped to about 50% of what it was. We’ve gone through our savings to try and pay things. Bring home pay now covers ONLY new house payment, utilities, groceries, life insurance, and government student loan. Have previously surrendered 2nd vehicle, (1st vehicle is paid in full). Old house in old state foreclosed on and being sold tomorrow. Credit cards remaining unpaid and sent for collections, etc.

    My question is this: should bankruptcy proceedings begin or should we continue as is? What, if anything, can our creditors do to us (other than trash our credit – which has already happened). We live in Texas. I would appreciate any suggestions. However please refrain from replies such as “get a job”, because we are both working full time jobs and have cut ALL unnecessary spending. We dread the thought of bankruptcy, but see no other alternative.
    We’ve done the credit counseling, etc., and the funds are simply not there.

    Can they garnish wages for debt in Texas?

    Thanks for the replies so far – I appreciate it.
    The one vehicle we have is paid in full and is a 1999 Ford Ranger – not new. Excellent comments everyone – thanks!

  20. Taylor February 22, 2014 at 1:49 am Reply

    So I’m considering filing for bankruptcy. Currently about 40K in debt, not including a house I purchased for a close family member but I don’t stay in. Tried to keep keep head above water but string after string of bad breaks has left me thinking there is no alternative. What could I expect if I do declare? would I qualify for bankruptcy? Would my financial situation be destroyed by doing this?

  21. Jimmie February 22, 2014 at 5:38 am Reply

    I owe a LOT on my credit card bill (my minimum payment is $475/month) and my interest rate is 12%. Please understand that this has taken almost 2 decades to get to this point and it was unintentional. Anyways, I have good credit with a score of 771. I don’t want to ruin that by filing bankruptcy. I am wondering if there is an alternative where I can cancel the card, pay say $50/mo and not have interest accrue. I will pay til I die if I have to but I cannot afford this anymore. I know you can do something similar with medical bills, so I thought maybe there is something out there for credit card bills. If it helps, I am disabled and receive SSDI, so maybe there is a government program, I don’t know. Thank you for any/all suggestions.
    Just some additional thoughts, what would trash my credit worse? Filing bankruptcy or debt settlement of some type as one person mentioned? Also wondering, if I just ceased paying or only paid the very minimum I could, and lets say they end up putting me in collections, etc., and let’s say they sue me for it, could they put a garnish on my monthly SSDI check? I don’t have any assets they could take (savings, house, etc).

  22. Alene February 22, 2014 at 7:33 am Reply

    What alternatives do I have to repaying the IRS besides the installment agrement?

  23. Shelba March 7, 2014 at 5:16 pm Reply

    There’s no way I’m going to file for bankruptcy. It’s just not going to happen. Does anyone have an alternative to bankruptcy in dealing with debts?

  24. Iris March 11, 2014 at 3:25 pm Reply

    My husband and I are contemplating bankruptcy in Nebraska as we have made some poor financial decisions in the last few years. We know which creditors we want to include but were wondering if anyone knows how old a bill needs to be before it can be included? We are expecting baby #2 in August and are considering waiting until after the hospital bills arrive to include them on the bankruptcy but not sure if we would be able to do that. On that same note, would any charges put on a credit card not be allowed either if they were not on there for a certain amount of time previous to filing? Thanks for any help!

  25. Catarina May 22, 2014 at 5:48 am Reply

    I was just wondering what is the difference between Chapter 7, 10 & 13 bankruptcies. How did the new law that Bush passed now affect bankruptcies (or does it at all)? I’ve heard everything that you can’t file for Chapter 13 bankruptcy anymore to you have to take financial planning classes thereafter. Also, is it advisable at all? I know normally people say make it your last resort, but I am beyond in debt and do not have any other resolutions. Any horror stories after filing? Any positive stories? Please enlighten me.

    thanks!

  26. Seth May 28, 2014 at 8:17 pm Reply

    I was laid off in February of 2009 and have not been able to find a good job since. I have been without medical insurance for almost 3 years and have to pay out of pocket for a required medication costing roughly $200 per month. I have moved back into my mother’s house (I’m 26) and I am overdrawn on my bank accounts every week just from paying off my car, my storage (I moved home from another state since I could no longer afford rent,) my medicine, groceries, and then attempting to make payments on my debt. I have spoken with a credit counseling organization (MMI) and they have offered me a plan by which I would pay them about $600 per month. This plan would entail $600 per month for debt payment, $485 for car payment, $125 for my student loan, $200 for medicine and $285 for storage of all of my possessions. This is $1695 per month. It does not include food. It does not include emergency preparation. And it is also $400 over my monthly income.

    Issue #1: I need a new job. On average, I apply for 20-30 jobs PER DAY. I have been told that, since the economy went bust, EVERYONE checks the credit of a potential employee. Obviously my current poor credit is enough to render me unhireable. If I declare bankruptcy, how much worse can (will?) my job hunting situation be? I currently temp at a front desk for just 30 hrs a week, no benefits.

    Issue #2: I need to be able to move out of my mother’s house. She is very kind to have opened her home to me when I am in such need, and I try very hard to stay out of her way, but she makes it very clear that it’s a huge burden on her to have me around (I know she is right, but it makes it no easier). She is also 100% against me declaring bankruptcy, not only for the impact it will have on my life but for the stigma it will bear on hers. I need to be able to have my own place again. But, my current credit is so poor AND declaring bankruptcy would remain for 10 years on my credit report, that no one would possibly rent to me. Which is less devastating to a potential landlord? Terrible credit and a ridiculous debt-to-income ratio, or a recent bankruptcy claim?

    Issue #3: My car is currently worth about $9k less than what I still owe. I have tried to sell it back to the dealership, they charged me $5k and even when I left the car with them, they immediately called me back to pick it up because apparently something in the undercarriage was repaired wrong (oh and getting my $5k back was a real hoot, let me tell you.) It has already been repo-ed once and I had to pay money I didn’t have to get it back. I have tried selling in private forums, I have tried refinancing, I don’t know what else I can do. No one will buy a car worth almost ten grand less than they’re paying. I want very much to keep it, but I can’t afford it. And yes, simply letting it go would COST ME MONEY. Dave Ramsay says, “sell the car.” What would Dave Ramsay suggest in this situation?

    Issue #4: I have no savings. If I declare bankruptcy, I will be living off of my income alone (my savings deteriorated during my time when I was unemployed, after which my debt increased exponentially. HOWEVER. If I declare bankruptcy and can divide my piffle paycheck so that at least SOME of it can go towards savings, then at the end of ten years when the bankruptcy falls off my credit report I will have something, instead of nothing. Or just…more of the nothing I have right now.

    Issue #5: I can’t pay these bills. (see the price outline in the first paragraph.) Won’t these companies just sue me anyway, if I don’t declare?

    Look. I love and respect my mother (who is not a financier.) I do not want to make her sad because her daughter went bankrupt before the age of 30. But let’s be realistic here. How much worse could my situation POSSIBLY GET if I declare, file for Chapter 7 and get my debts forgiven so that I may begin to rebuild.

    I would very much appreciate ANY input, on a REALISTIC, REASONABLE alternative to me filing for bankruptcy. I have listened to “Financial University” by Dave Ramsey about 1000x and I’ve read Suze Orman’s books and seen her show.

    It would bring me so much comfort, and I would so appreciate it, if my peers on yahoo who have experience or knowledge with this kind of thing could reach out and give me their honest, informed opinions.

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