Alternatives to Filing for Bankruptcy


In some situations, filing for bankruptcy is just not an option. Some people do not wish to undertake the legal process involved with bankruptcy, while others may not be eligible to file. If you do not want to file for bankruptcy, or if you are not eligible to file, you are not without options.

Each person’s situation is different, and the outcome for each case will vary depending on the individuals and circumstances involved. We cannot guarantee the outcome of any case, but we can help you select the best course of action to help your resolve your financial challenges. When you retain DeMarco•Mitchell, PLLC, we will review all of your – not just your bankruptcy options. The two most common options are: (1) Debt Settlement; and (2) Credit Counseling.

Debt Settlement. 
 Working with your creditors and lenders may actually improve your situation. We know that sometimes collectors can be harassing and that the thought of working with them to reach an amicable resolution can seem crazy. Nonetheless, most creditors would rather receive some payment than none at all – especially if they are a collection agency or buyer of “junk debt.” If bankruptcy is not an option, for whatever reason, you should give serious thought to settling your debts. For a more detailed discussion, see our debt settlement page.

Credit Counseling. 
A variety of credit counseling services are available to individuals with consumer debt. Consumer Credit Counseling Services is one of the oldest and most reputable of such services. If you opt or the credit counseling route, make sure, at a minimum, you confirm they belong to the National Foundation for Credit Counseling (NFCC).

Credit counseling agencies are private, nonprofit entities that provide money management counseling to individuals and families. They will assist you in arranging a mutually acceptable debt repayment plan with your creditors. Typically, such plans will result in lower monthly payments and lower intereTheyyment plans do NOT, however, result in reduced principal balances.