Alternatives to Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is not for everyone. You should only consider bankruptcy if no alternative is practical or available. Here are some of the alternatives and a list of pros and cons:

Pay off your debt

Advantages

• Persons with a good credit score will stay that way
• No lawyers involved
• No court involved
• Your information stays private
• The option of bankruptcy remains available
• Some creditors will settle for .50 on the dollar
• You keep all of your assets intact

Disadvantages

• May not be possible
• Your credit may already be ruined

Fight back against creditors

Advantages

• Some collectors violate Federal Law and can be countersued
• This option is very satisfying
• Best used if you only have extremely old debts
• Can be used to get rid of debt
• Can be used to restore your good credit rating

Disadvantages

• You can possibly lose
• Cannot be used for new debts
• If you lose, you will pay increased attorney fees

Do nothing - Stick your head in the sand

Advantages

• Many creditors will never sue you
• Debts become unenforceable after 5 years
• Negative items fall off your credit report after 8 years

Disadvantages

• Some debt collectors will illegally sue you after 5 years
• Some debt collectors will illegally ruin your credit report after 5 years

.

Law Practice Associates PA

Tampa - Clearwater - New Port Richey - Hillsborough - Pinellas - Pasco - Hernando

We are a debt relief agency agency. We help people file for bankruptcy relief under the Bankruptcy Code.