Popular Alternatives to Filing for Bankruptcy: What You Need to Know

Filing for bankruptcy is a big decision that should not be taken lightly. It can be a great way to get out of debt, but it also has some major drawbacks. If you are thinking about filing for bankruptcy, you may consider some alternatives first. In this blog post, an experienced bankruptcy attorney will discuss some popular alternatives to bankruptcy and what you need to know about them. 

Debt consolidation is one of the most popular alternatives to bankruptcy. This is where you take all your debts and merge them into one or fewer new loans. You will need to have a good credit score to qualify for a debt consolidation loan, and you will still be responsible for making monthly payments, but they will usually have lower interest rates. 

Another popular bankruptcy alternative is debt settlement. This is where you negotiate with your creditors to settle your debt for less than what you owe. This can be a great way to get out of debt, but it does have some drawbacks, including damage to your credit score. 

If you are thinking about filing for bankruptcy, you should also consider credit counseling and debt management. This is where you meet with a credit counselor or agency to create a plan to get out of debt. This can be a great way to get help from professionals and lower your interest rates, but you will now add the price of their service/maintenance fees to your monthly payments. 

The last alternative to bankruptcy is doing nothing. This may seem like a bad idea, but it is sometimes the best option if you are "judgment proof." This means that you do not have any assets that creditors can take to satisfy a debt. If you have a job and own property, you are not judgment proof. However, if you are retired and live on a fixed income, you may be judgment proof. 

No matter what decision you make, it is important to weigh the pros and cons carefully. If you are considering trying one of these alternatives to bankruptcy, you should speak with local bankruptcy lawyers, Lewis & Jurnovoy, in Panama City Beach. They will help you understand your rights and options under the law, and help you find the best solution for your unique situation. 

Lewis and Jurnovoy is a local law office serving the Florida Panhandle. We specialize in bankruptcy law, including Chapter 7 and Chapter 13 bankruptcy. We will work to achieve the best financial remedy for your outstanding debts. 

Lewis & Jurnovoy PCB 

2714 West 15th St 

Panama City, FL 32401 

(850) 913-9110 

https://www.LewisandJurnovoy.com