Yes, there are alternatives
to filing bankruptcy. Anyone considering filing bankrupcty should
first evaluate all of the potential alternatives, and then make an informed
decision regarding whether bankruptcy is the best choice. It should
be stressed that this is a personal decision for each individual.
There is no one answer that is right for everyone. Only by carefully
exploring all of the alternatives may a person truly know whether bankruptcy
is the best solution to their debt problems.
Prior to making a decision to file
bankruptcy, each individual should first attempt to contact his or her
creditors and determine whether it is possible to obtain their cooperation
in working out a different payment schedule. Most people would be
suprised to learn that creditors often are willing to make reasonable modifications
to assist the debtor in repayment. Communication and honesty are
the key words here. In exploring this option, the creditor should
be honest and forthright with the creditor regarding one's financial situation.
The debtor should also take a close
look at his or her assets. If any have a resale value, consider whether
a sale of those assets and the application of the proceeds of the sale
to one's debt may reduce the debt to a more managable level. Often,
after the sale of one or more personal assets, debt is reduced to a level
which makes bankruptcy a less attractive option.
Another option to explore, which
may not be available to every debtor, is a consolidation loan. It
may be possible for some debtors to obtain a consolidation loan to repay
one's debt, which very often will result in lower overall payments.
Another option to examine is Consumer
Credit Counseling Service. CCC is a nationwide nonprofit organization
that attempts to work with both the debtor and his or her creditors to
devise a more manageable repayment plan. This service very often results
in revised payment plans which are acceptable to both the debtor and the
creditor, thereby eliminating the need to file bankruptcy.