Depending on your financial situation, there are a host of alternatives to bankruptcy that can help rectify your financial difficulties.

Negotiating with Creditors

When bankruptcy is filed, creditors lose money. Therefore, many creditors are willing to negotiate a settlement in order to receive a portion of their money. Negotiating with creditors is a viable alternative for a debtor who has sufficient income or assets that can be liquidated, and particularly if those assets would be liquidated in a bankruptcy.
A company or small business under financial distress could also potentially negotiate with creditors to reduce and renegotiate delinquent debts in order to improve or restore liquidity and continue operating. This type of solution is often a less expensive alternative to bankruptcy,  and often reduces debt and extends payment terms.

Debt Consolidation

In cases where the interest payments alone are more than the debtor can afford, debt consolidation allows the debtor to borrow sufficient funds from a single lender at a low interest rate that allow repayment of several other higher interest rate debts. Commonly used to pay off high interest credit cards, debt consolidation simplifies payments to one monthly creditor. Additionally, the lower interest rate allows more of the principal to be paid, resulting in faster debt repayment.
Whether you’re looking for alternatives to bankruptcy, or searching for the right type of bankruptcy, we can help! At Kelley & Clements, our experienced attorneys can help you identify the pros and cons of bankruptcy.
Contact our office for more information on our services, or make an appointment today!