Bankruptcy Alternative

The Chapter 7 bankruptcy alternative has never been a goal of any American, if that even needs to be said. From the very first time that one of our countrymen takes out a loan – whether as an investment for the futures of themselves and their families or a tragically necessary surrender to dismal events or even a whimsy undertaken during brighter times – they’ll be bound and determined to repay the privilege regardless of the availability of a full discharge through the bankruptcy alternative. All the same, in the back of their minds, the borrowers will likely also believe that the Chapter 7 bankruptcy alternative could one day eliminate said debts should the grimmest of prospects come to pass. Alas, just as none-grimmer financial winds batter all corners of our nation, consumers researching the bankruptcy alternative have found that governmental protection shouldn’t truly be relied upon as an ultimate solution for most households’ debt problems.

Paramount among the most recent (and, most unaffiliated consumer finance professionals would agree, ultimately disgraceful) adjustments to the United States Bankruptcy Code was the wholesale modification of the qualifying parameters borrowers pursuing the bankruptcy alternative would need to present to their county court for consideration within the Chapter 7 debt discharge program. The amount of money that borrowers owe means almost nothing to the bankruptcy court trustee charged with overseeing a specific petition. In fact, the Chapter 7 bankruptcy alternative now only would easily be adopted by borrowers who’d earned less than the median income for their state the year before they realized they would need governmental assistance with their debts.

This was a brutal shit of gears from the traditional and clearly more reasonable approach of allowing a judge appointed by the bankruptcy court of the borrower’s state to personally evaluate each case upon (sensibly enough) the demonstrable incapacity of those requesting the Chapter 7 bankruptcy alternative to otherwise satisfy their lenders. Furthermore, should the borrowers still somehow manage to gain full Chapter 7 protection through the bankruptcy alternative, they must also thoroughly understand that not every one of their loans will be deemed legally appropriate for bankruptcy discharge. Though national polls have illustrated that near a majority of consumers newly thinking over the Chapter 7 bankruptcy alternative do so largely because of worries about home foreclosure or car repossession, these type of secured loans aren’t generally a part of Chapter 7 bankruptcy protection.

Seems like common sense, but too many home owners primarily worried about their mortgage payments and the imminent danger of foreclosure go ahead and pay the ever increasing costs of the Chapter 7 bankruptcy alternative – from administrative expenses to the irredeemably silly credit counseling courses to the more and more essential bankruptcy attorneys – before recognizing too late that bankruptcy protection shan’t benefit their particular situation. With this in mind, a fresh wave of American consumers have shied away from the bankruptcy alternative and instead looked up some of the new alternatives to bankruptcy that a new breed of consumer finance experts have devised as mechanisms with which to combat the credit card lenders. Debt settlement negotiation essentially advertises itself as a bankruptcy alternative. Indeed, the better settlement companies utilize this aspect of their program to reduce their clients’ existing credit balances by almost two thirds through aggressive reminders that – should negotiations fail – the Chapter 7 debt elimination bankruptcy alternative remains a possibility, however slight.

The decision to reach out for help with your debt is not one that's easy to make. You were raised to "do the right thing", but now it’s nearly unbearable. You struggle along while your creditors are turning up the heat. And now you’re at the point where the late fees, penalties and interest expense make it impossible to keep your head above water.

Ask yourself this. If you could eliminate your debt without permanently damaging your credit, why wouldn't you?

Avoid Bankruptcy

Debt Relief

Bankruptcy is not your only option! Our goal is to help you determine the right course of action for you to take. We will connect you with a debt settlement company today that will help you avoid filing for bankruptcy protection.

Are your finances spiraling out of control? Get the information you need today to stop harassing creditor’s phone calls. Total Debt Relief provides a matching service to connect you with pre-screened Debt Settlement Professionals. These debt management pros will educate you on all of the options available to you to get out of debt. Total Debt Relief helps you make the most informed decision possible so that you can get your financial life back on track.