Kouts Bankruptcy Attorney

Filing for bankruptcy is one of the best ways to resolve outstanding debts for those who have become overwhelmed by their financial situation. However, bankruptcy is not appropriate for everyone. Fortunately, there are alternatives to filing for bankruptcy that could help you avoid the stresses and court appearances required to declare bankruptcy. If you have questions about whether filing for bankruptcy is right for you, it is critical to contact an experienced Kouts bankruptcy attorney who can evaluate your claim and explain your legal options.

Debt Consolidation Loans

Those who are wary of filing for bankruptcy may want to consider consolidating their debt through a debt consolidation loan. There are two main types of debt consolidation loans, those that are secured by equity in a person’s home and those that are not. When a person does not have equity in his or her home and applies for a debt consolidation loan, then a company will simply loan the person the funds necessary to pay off debt. In these cases, the debtor makes one monthly payment to the consolidation company, which then makes payments to the other creditors. Those who have equity in their residence should think carefully before taking out a debt consolidation loan, as they could end up losing their home if they can’t make their payments.

Credit Counseling Plan

Another alternative to filing a personal bankruptcy case is to create a credit counseling plan. Generally, these plans involve depositing funds each month with a credit counseling service. The deposits are then used to pay off creditors in accordance with the payment plan that was developed by a counselor in exchange for a monthly fee. Many creditors are willing to lower interest rates and accept reduced payments for those who choose this route. However, it is also often necessary to agree not to apply for or use additional credit until current debts are completely paid off.

Successful repayment plans require that debtors make regular and timely payments and could take years to fully complete. Furthermore, debt repayment plans do not erase debts as going through Chapter 7 bankruptcy might and those who choose this route are still required to pay off creditors whose debts are not included in the plan, review monthly statements, and ensure that lower interest rates and waived late fees are reflected on statements. However, it can eliminate a lot of the stress that goes hand in hand with paying overdue bills and dealing with creditors.

Call Today to Speak with a Kouts Bankruptcy Attorney About Your Case

Whether either of these options is a good alternative to filing for bankruptcy depends on a number of circumstances, including a person’s income and the type of assets that he or she has access to, so if you are considering filing for bankruptcy, but want to assess your other options, please do not hesitate to contact the bankruptcy legal team at the Whitten & Whitten by calling 219-756-0555. We are standing by and eager to help you through every step of your case.