Overview
Do Nothing
Negotiations
Loan Modification/Workouts
Loan Modification/New Homeowner Rules
Debt Consolidation
Credit Counseling
Foreclosure Alternatives
Budget/Debt Managment
Scams

Overview

Before filing for bankruptcy it is important to look at alternatives. Some debtors, stressed out, emotional, will rush into bankruptcy. But this is exactly the time when they should take a couple of breaths and explore the alternatives. Many of these are long shots but you never know--you might find one that is right for you. And remember, none of these alternatives will preclude you from filing bankruptcy later on.

Your attorney will be a key player in the decision making process. I can help. Call me now. I am an attorney and I give advice on Bankruptcy and Foreclosures in Louisville, Kentucky and Southern Indiana. CALL ME ON MY CELL NOW. I WILL PERSONALLY PICK UP OR CALL YOU BACK WITHIN 20 MINUTES. TEST ME! 502.592.9771.

Here are some alternatives.

Do Nothing.

Perhaps you are judgment proof. You have no property to be taken by a creditor who has a judgment against you. And if your income is low or is from public benefits such as social security then there is little or nothing to be garnished. Most debtors would rather file Bankruptcy to get the whole thing over with and get some peace of mind. But if you stay out of Bankruptcy Court you will save my attorneys fees and court filing fees.

Negotiations

If you are behind in installments you can talk to your creditorrs and see if you can persuade them to:

• Lengthen the time for payment;
• Spread missed payments on top of the existing payments;
• Lower the interest rate;
• Write a “forbearance plan”--for example, the creditor allows you to pay interest only or pay nothing for a few months and then you later pick up the suspended amounts on top of your regular payments.
• See if your creditor will offer something reasonable.

You can do this yourself or you can hire me to do it. Some debtors like to try this on their own. If you will feel comfortable doing this then it's not a bad idea for you to go ahead. You can call me if you need me.

Loan Modification/Workouts

Isn't this what we just talked about? Loan modification IS a result of negotiations. You may also hear the term "workout". It's the same as loan modification. Sometimes "negotiation" is used as a verb, as in "the debtor negotiated a loan modification." At other times you will see it used to describe a separate (stand-alone) bankruptcy alternative. Your objective is always the same: to change the deal to make it more advantageous to you. And regardless of whether you label the procedure negotiations, loan modification, or workout, the five alternatives above should be key objectives.

Loan Modification/New Homeowner Rules

The new homeowner rules provide opportunities for very favorable modification.

Debt Consolidation

This involves a "consolidation loan" between you and the agency. Normally the loan is secured by a second mortgage on your house although in rare situations you can get a personal unsecured consolidation loan. You still make a single monthly payment to the agency and the agency pays the creditors. Most of these agencies will rip you off.

Credit Counseling

These agencies often put you on a debt consolidation plan. Alternatively, they will negotiate with your creditors to get you a better deal. Many of these agencies will rip you off.

ForEclosure Alternatives

If you are faced with forclosure and you want to avoid bankruptcy and stay in your home--see FORECLOSURE ALTERNATIVES.

Budget/Debt Management

Take a close look at your income and expenses and see if you can come up with a budget that will help you with your finances.

Compare your monthly spending to your monthly income. Most people underestimate the amount they spend relative to what they earn. By doing this comparison you will see how you are using credit to finance a lifestyle that you can't afford. At that point you can make a budget plan which involves cutting a lot of those unnecessary expenses. Also, think about ways to bring in some income; for example, can you live with the kids? What about selling property? What about taking in a boarder? Any slight chance of a second job?

SCAMS

At this time in your life you are very vulnerable to scams. And the sharks know this!

Worried about scams? I can help. Call me now. I am a lawyer and I give advice on Bankruptcy and Foreclosures in Louisville, Kentucky and Southern Indiana. CALL ME ON MY CELL NOW. I WILL PERSONALLY PICK UP OR CALL YOU BACK WITHIN 20 MINUTES. TEST ME! 502.592.9771.