No Bankruptcy –

Consider the Alternatives …

Bankruptcy vs Other Financial Options: 

Have you ever been stressed and overwhelmed by your debt situation?

Have you ever wondered if bankruptcy would be right for you?

Have you ever considered if there were other options you could try?

Have you ever decided that bankruptcy should only be a last resort?

If you answered ‘yes’ to any of these questions, read on. Below you will find a list of some of the most common alternatives to filing bankruptcy:

  1. Debt Consolidationcan i afford to make a payment on a reaffirmation agreement bankruptcy chapter 7 kansas lenexa wpllc
  2. Payday Loan
  3. Debt Management Company / Plan
  4. Negotiating with Creditors on Your Own
  5. Selling or Liquidating your Assets
  6. Budgeting / Living Frugally / Financial Counseling
  7. Borrowing from Family / Friends
  8. Increasing Income Through Side Jobs / Freelancing
  9. Borrowing from Retirement Accounts
  10. Personal Line of Credit
  11. Credit Card Balance Transfer
  12. Home Equity Loan/Line of Credit
  13. Waiting out Statute of Limitations
  14. Moving in with Family / Friends 
  15. Doing Nothing

How much do you know about each of these options? 

How much risk are you willing to take? 

How long will it be before you are stress free? 

How can you get ahead without knowing all of the facts?

If you are unsure about your answer to any of the above questions, here is a list of some of the most common CONS to bankruptcy alternatives:

  1. May require collateral or a good credit score for a favorable interest rate. 
  2. Could increase overall debt burden.
  3. May involve paying taxes on the forgiven amount of debt.
  4. Requires consistent monthly payments, which might take longer to pay off debts compared to other options.
  5. Success isn’t guaranteed.
  6. Might require skilled negotiation.
  7. Might lead back to considering bankruptcy after throwing away a lot of money / assets.
  8. Losing valuable assets, which could have sentimental or long-term financial value.
  9. Requires strict adherence to a budget, which might not be sustainable for everyone, and it might take longer to clear debts.
  10. Might not necessarily address higher-interest or larger debts.
  11. Requires significant time and effort, might not be sustainable in the long term.
  12. Might lead to a reduced quality of life and can be challenging to maintain consistently.
  13. Not all debts or individuals qualify.
  14. Garnishment of your income / bank accounts.
  15. Potential tax penalties and jeopardizing retirement savings.
  16. High-interest rates and might require good credit history for favorable terms.
  17. Introductory rates might expire, leading to higher interest rates.
  18. Puts home at risk if unable to repay, and interest rates might be variable.
  19. Loan approval isn’t guaranteed.
  20. May lose home / car.
  21. Might not achieve debt reduction.
  22. Creditors might pursue legal action before the statute expires, and it doesn’t erase the debt.
  23. Broken relationships.
  24. Worsening mental and physical health.
  25. Never ending debt cycle.

There are of course, pros and cons to each decision that we make. You must pick the one that is best for you and your financial situation. To do that, be well informed. 

Learn Your Options…