Are you in debt and considering filing for bankruptcy in MA? Before you make the jump, have you considered all other possibilities and alternatives to pay off the debt? If not, keep reading! Bankruptcy should only be a last resort, after all other attempts to pay down the debt have failed. When it comes to alternatives to bankruptcy, you have a few options. Let’s break them down:
- Contact your creditors – Firstly, if you’re struggling to meet the minimum payments on your loans or bills every month, talk to your creditors. Explain to them your situation and see if you can set up a payment plan. Often times, your creditors will be understanding and willing to cooperate, but more often than not, you will discover that you are wasting your time.
- Credit counseling plan – Another option is to set up a credit counseling plan. If you call your creditors and inquire about a debt repayment plan, they may be willing to reduce your interest rates, as well as the payments. In most cases, you make monthly deposits with the credit counseling service. The counselor will develop a payment schedule and will use the deposits to pay your creditors. There may be a catch, however: upon entering the repayment plan, you may have to agree to not use any credit for the duration of the program. Oftentimes, the only thing using a credit counseling plan will accomplish is the generation of a fee. And if you have a significant amount of debt, settling only a portion of your debt serves no purpose.
- Debt consolidation loan – Lastly, you may choose to apply for a debt consolidation loan. This loan is used to pay off your creditors in one fell swoop, and you’ll then be responsible for paying down the consolidation loan. This should only be used as a prudent last resort.
Before you make the decision to file for bankruptcy, be sure you consider all other alternatives. Believe it or not, creditors are human too and may be willing to help you out by reducing payments or setting up a payment plan. Be proactive and get in contact with your creditors. They’ll be more willing to work with you if you take the initiative and call earlier rather than later. Don’t let things go from bad to worse. For all your bankruptcy needs, inquiries, concerns, and questions, call the Law Office of Barry Levine at 978-922-8440.