It may be easiest to think of Bankruptcy alternatives under the larger umbrella of loss mitigation strategies. Bankruptcy is seen by many as the most drastic loss mitigation strategy and if you were putting a loss mitigation plan together it is normally the last resort. Unfortunately many people (and businesses don’t have a plan ahead of time that can help them navigate a difficult time in their life.
Bankruptcy provides legal protection from creditors and everyone has the possibility of bankruptcy protection. That is normally enough to “work-out” debts you have accumulated without filing for Bankruptcy.
Some of the most common Bankruptcy alternatives include: Debt Settlement, Debt Consolidation, Loan Modification, Foreclosure Mediation. All of these have in common the fact that they provide for more attractive payments through communication. Knowing what protection bankruptcy affords you is a great way to evaluate your options. Having a professional service provider to help you through the evaluation can save you time and money not to mention headaches.
Most people experience financial hardship following an unintentional loss of income or an unexpected increase in expenses. These 2 situations tend to provide many of the same results and have happened to enough people for you to make a realistic plan “Just in case something happens”.
Becoming an expert on Bankruptcy Alternatives is not something easily accomplished in a year with a clear head. If you only have a short period of time and you are under a lot of stress you are probably better off calling a licensed service provider for a free consultation.
We have video series on each of the subjects listed above including loss mitigation planning and others. It is quite a bit of information and you may want to have a pen and paper ready for documenting your thoughts.
Bankruptcy Alternatives allow you the possibilities of using creativity and deciding the results you are willing to accept.