Bankruptcy Alternatives
Comparing bankruptcy alternatives requires a degree of legal
familiarity and a keen eye for financial potential. The best approach to
qualifying options is based on a consistent measure of potential (i.e.
impact on net worth over time). The worst bankruptcy alternatives are
those that are difficult to understand, yet are highly recommended by
sales persons who provide only non-responsive assurances rather than
factual answers.
Popular Bankruptcy Alternatives
Banks, mortgage companies and a wide assortment of financial service
companies actively seek new customers for a highly lucrative commercial
market niche. Low income, poor credit, and unemployment all contribute
to continued growth in the high risk sector. Companies discovered years
ago that high risk equates to high profits. The most popular, top 5
bankruptcy alternatives today are:
- Professionally operated courses in credit counseling and personal
budget management techniques.
- Home equity loans and debt consolidation loans based on existing
equity and real estate appraisals.
- Secured and unsecured high risk / high interest rate loans to
extend repayment schedules.
- Debt negotiation specialists who request more favorable terms in
exchange for waivers of rights.
- Debt negotiation lawyers who contest liability, or negotiate
workout agreements based on declining cash flow, or initiate
litigation based on state or federal laws.
Procrastination is the single most devastating decision that prevents
financial recovery. Each day that nagging financial problems are
ignored, self-destructive patterns become ingrained to a point of
eventual unquestioned submission. Rather than let hope slip away, take
positive action. Decide for yourself if filing bankruptcy makes sense or
if any one of the bankruptcy alternatives available offers a better
solution. Otherwise, through submission, your financial health and
safety will be determined by forces beyond control. |