What are the Alternatives to Bankruptcy?

by DeLadurantey Law Office, LLC on January 12, 2015

DecisionsIf you need relief from your debt but you cannot pass the means test in order to file a Chapter 7, you do not think you can successfully complete a Chapter 13, or you want to avoid filing a bankruptcy case, there are other debt relief options you should consider:

Debt consolidation

If you have multiple loans that you are struggling to pay, you may be able to negotiate with all of your lenders to establish a debt consolidation plan. This process involves obtaining a single, larger loan that combines and pays off all of the smaller loans. You may be able to negotiate a lower payoff amount than what is owed on the smaller loans, which means you can pay off your total debt at a more manageable amount and pace.

Loan Modification

If you are struggling to pay your loans, we can help you negotiate better terms with your lender. Some of the terms we can seek to improve in a loan modification include:

  • Lower the applicable rate of interest
  • Re-amortize the loan to include any past due payments
  • Waiver of accrued interest and fees charged
  • Reduce your loan balance
  • If your interest rate is adjustable, obtain a fixed interest rate
  • Lower your total monthly payment

Debt settlement

The goal of debt settlement is to persuade your creditors that if they want to be paid any money from you, they must negotiate with you and agree to settle for a reduced amount on what you owe. Because of our well-known reputation as bankruptcy attorneys, we are proficient in negotiating with debt resolution. Your lenders will quickly understand that if you are forced to seek bankruptcy protection, they will likely get paid very little if anything from you, so they are usually open to reaching a settlement.

Judgment proof

If you are considered “judgment proof” because you are insolvent (you do not own real estate or non-exempt property), a creditor cannot satisfy a judgment against you. For example, if your sole source of income is Social Security benefits, social welfare or your retirement pension, these types of income are legally protected from creditors.

For your student loan, bankruptcy, foreclosure, and debtor’s rights matters, contact DeLadurantey Law Office, LLC at (414) 377-0518. We serve the counties of Milwaukee, Waukesha, Kenosha, and Racine, including such areas as Milwaukee, Merton, Delafield City, Waukesha City, and Kenosha. Visit our web site and like us on Facebook.

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