9:00 am- 5:00 pm

Hours Mon. - Fri. (Sat. & Sun. by appt. only)




5 Bankruptcy Alternatives Everyone Should Know

GeorgetteMillerLaw.com > Bankruptcy  > 5 Bankruptcy Alternatives Everyone Should Know

5 Bankruptcy Alternatives Everyone Should Know

Almost every person hits a point in their life when finances get too overwhelming to deal with. Financial distress is not necessarily a cause to immediately file for bankruptcy to get out from under the growing debts. There are a few good solutions to consider to get back on track before taking the most drastic route.

1# Adjust The Budget

Debt counseling provides advice on cutting back expenses to provide an opportunity to redistribute income toward debt. This is helpful for anyone with a steady income source that currently has enough luxuries that are not needed to get by.


2# Reach Out to Creditors

A surprising amount of lenders are willing to work with clients that owe money because they get absolutely nothing from bankruptcy. Rather than avoid phone calls and letters, get in contact with the creditor to find out what arrangements can be made to continue a good relationship. A debt counseling specialist can be hired to as representation during negotiations if desired.


3# Debt Consolidation

Multiple past due accounts and growing interest rates added to the balances can be resolved by working with one lender. Consolidating all of the debts into one single payment involves borrowing from the lender with terms that are more suitable to repay. It may require a co-signer or asset to get approved if there is already significant damage to the credit report.


4# Debt Restructuring

A business faced with the unfortunate reality of losing everything to bankruptcy can renegotiate debts. It provides a possibility to continue to operate in an effort to rebuild by negotiating longer payment terms or reducing overall debts owed.


5# Formal Consumer Proposal

Offering a deal to creditors is known as compromising debts to avoid total bankruptcy. The best course of action is to work closely with bankruptcy attorneys to form a legally binding proposal for either paying a percentage of the debt, or extending time to slowly pay the balance. Once accepted, all conditions of the proposal must be followed to maintain good standings with the agreement. It’s important to remember that the proposal can also be rejected if the lender does not agree. A refusal would leave the option to resubmit after making changes or declaring bankruptcy.

If you are falling behind trying to repay your debts, please give us a call at 866-964-6529 to get help avoiding bankruptcy. Our team of bankruptcy lawyers at Georgette Miller and Associates, P.C. are here to provide counsel to anyone that needs experience on their side.