Alternatives to Bankruptcy

Once you have savings, you may consider negotiating with your creditors on the debt you owe. Many creditors are hesitant to go through a collection procedure because of the cost and are eager to get any payment on the debt. Some creditors settle for 10 percent to 25 percent of the debt, while others want much more. Also important to note is that throughout the period where you are trying to negotiate your debts, you are not protected from creditor calls or legal action. Only bankruptcy’s automatic stay can bring you those protections. If making creditor calls stop today is the most important thing to you, bankruptcy may be a better option.

At Blalock Law Offices, I help North Carolinians understand debt consolidation’s benefits and drawbacks. Debt consolidation is somewhat similar to a Chapter 13 payment plan in that multiple debts and bill payments are renegotiated and combined into a single, typically lower, monthly payment. While debt consolidation is similar to Chapter 13, it also does not offer the protections that bankruptcy does. That is, debt consolidation does not stop creditors from calling, nor can it stop a foreclosure. However, because the number of bankruptcy discharges you can receive is limited, debt consolidation can prove to be a useful means if you can stand the continued collection efforts.

While bankruptcy can solve most debt problems, it is not the only answer. At Blalock Law Offices, P.A., I take the time to counsel all clients one-on-one. I work with you to find a solution to your financial distress, even if other attorneys have told you that it was too late. Please call today for your free consultation at (336) 274-2343 or contact us online.