Bankruptcy Alternatives

Filing for bankruptcy is a very serious undertaking. This is not a decision that should be made without serious thought and deliberation. Below are some other ways in which to deal with your creditors:

Contact Your Creditors

Explain why you cannot make your payments and suggest an arrangement that could work for both of you. You may be surprised that many creditors are more than willing to cooperate.

Debt Consolidation Loan

You can approach a bank or financial institution about combining or "consolidating" your debts into one loan. This creditor pays off all your debts and, in return, you make a monthly payment to that creditor. Make sure you shop around - interest rates vary. Avoid further credit purchases; this could make your debt load too great for you to handle.

Informal Proposal

In some cases you can work with your creditors to set up a payment plan that will allow you to pay your creditors in an orderly way and thus help preserve your credit rating. This operates similar to a debt consolidation loan except you do not borrow money to pay off your creditors.

Consumer Credit Counseling

Contact a reputable credit counseling group in regards to your outstanding debt.

http://www.consumercredit.com