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When you are faced with more debt than you can handle, you should research all of your bankruptcy alternatives. Here is a simple list; follow the links for more information. For more detailed information prepared by a bankruptcy attorney, see a special report on: Bankruptcy Strategies. Claiming Maximum Benefits Under Chapter 7 & 13. Find Out How The Pros Use Their Options Wisely And Beat Creditors At Their Own Game.
Here is our six point bankruptcy alternatives research plan:
Our personal budgeting page has even more information, or use other resources to learn how to make a household budget.
Your next step is to review your budget and determine if you can repay your debts on your own. By cutting expenses you may find that you can solve your problems on your own.
The next option is a debt consolidation loan, where you borrow at a lower rate of interest to repay high interest debts like credit cards. Unfortunately it is not always possible to qualify for a debt consolidation loan if you have bad credit.
If you don't qualify, your next option would be to consider a debt management plan through a credit counselor. Credit counseling is a great option if you can afford to repay your debts in full, but you just need some time.
If you can't afford to repay your debts in full, then the next step is to consider a Chapter
13 Wage Earner Plan (if you are American), or a consumer
proposal (for residents of Canada).
Only if all of these options fail should you consider personal
bankruptcy. That's why it's critical to consider all of your bankruptcy alternatives.
Resources
Here are some helpful resources to help you consider your options:
Bankruptcy Strategies. Claiming Maximum Benefits Under Chapter 7 & 13. Find Out How The Pros Use Their Options Wisely And Beat Creditors At Their Own Game.
How to Get Out of Debt Fast Without Filing Bankruptcy
The Bankruptcy Alternatives Blog
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