Should You File for Bankruptcy or Pursue Bankruptcy Alternatives?

 Posted on January 16, 2023 in Debt Relief

There are many resources available for people who are struggling to repay their debts on time. The best-known debt relief opportunity is bankruptcy. Filing for bankruptcy is an excellent option under many circumstances. However, it is not the only debt management solution that individuals who are navigating unmanageable debts may benefit from considering. A number of bankruptcy alternatives might be more beneficial for specific situations.

When Is Bankruptcy Preferable?

Bankruptcy allows filers to discharge qualifying unsecured debts. Chapter 7 filers can receive a discharge within a few weeks, as they are not required to repay their creditors before benefitting from this form of relief. Chapter 13 filers make manageable payments on their debt over the span of 3-5 years before receiving a discharge. Once the discharge is entered, the filer is no longer responsible for the debt nor can their creditors ever demand repayment of it again.

As a result, filers who can either make manageable payments once their debts are reorganized or who cannot repay their unsecured debts but qualify for Chapter 7 relief tend to benefit significantly from filing for bankruptcy.

When Are Bankruptcy Alternatives Preferable?

If you are only struggling to repay secured debt, like a mortgage or a truck loan, filing for bankruptcy likely won’t be helpful. Refinancing your debt or seeking a loan modification may be a better idea.

Similarly, if you are only grappling with one unsecured debt, working with an attorney to secure a debt settlement will likely make more sense than filing for bankruptcy. You will benefit from debt relief while avoiding the complexities of bankruptcy law.

Schedule a Free Consultation with a Compassionate San Antonio Bankruptcy Lawyer

If you are unsure of which debt relief and debt management options may benefit your circumstances, that is okay. The reputable San Antonio, TX bankruptcy lawyers at Law Offices of Chance M. McGhee are always available to answer your questions. We are proud to offer confidential, risk-free consultations at no cost because we believe that opportunities for relief do not do anyone any good if people who are struggling do not yet know what these opportunities are or how they work.

You can schedule a free case evaluation today by submitting a contact form on our website or by calling us at 210-342-3400. When you are ready to move forward, we can assist you with finding the opportunities that will work best for your unique circumstances. We look forward to speaking with you.

Source:

https://www.usa.gov/debt