Alternatives to Bankruptcy in Kane County

Discuss the alternatives to bankruptcy with a certified Kane County bankruptcy lawyer.

Filing for bankruptcy is a decision that should be made with great care. If you are in financial distress, it may appear that bankruptcy is the only solution, but there may be alternatives that can help you alleviate your financial burdens. Before you make the decision to file for a Chapter 7 or a Chapter 13 bankruptcy, our Kane County bankruptcy attorney from the Law Office of Joseph P. Doyle may offer you some alternatives to consider that would solve your problems. With years of experience, and a dedication to providing personal service at reasonable rates, we believe that you should give us a call to discuss your situation before you make a decision.

There are three common alternatives to filing for bankruptcy that can offer you financial relief. They include:

Debt Settlement: The process of debt settlement involves negotiating a reduced balance with your creditors. This reduced balance must be mutually accepted; in other words, both parties (the debtor and the creditor) must approve the amount of the reduced balance. In some cases, creditors prefer a debt settlement option, especially when the debtor does not have assets that can be liquidated to pay down a debt.
Debt Consolidation: Debt consolidation involves taking out a large loan in order to cover the cost of all of your debts. Though you will be borrowing more money, it will cost you less to repay the money that you are borrowing, as you will be paying one interest rate, as opposed to several. It is also possible to get a reduced rate on a debt consolidation loan if you have collateral.
Judgment Proof: If you have a large amount of debt, but you have low or no income, you could be considered judgment proof. When you are judgment proof, you do not have funds available to you for creditors to take. In this scenario, creditors will write the loan off as a bad debt.

To learn more about bankruptcy alternatives, contact us today.