What Are Alternatives to Chapter 13 Bankruptcy?

Our Maryland Chapter 13 Bankruptcy Attorney Explains Your Options

Our chapter 13 bankruptcy attorney explains alternatives to Chapter 13, including debt consolidation plans and workout agreements.

While Chapter 13 bankruptcy has less severe consequences than Chapter 7 bankruptcy, it can still negatively impact your credit rating. It can also hurt your ability to receive future loans. However, waiting too long to file bankruptcy can hurt your long-term financial prospects. Your savings, 401Ks and other pensions could wind up depleted if you make the wrong move. An experienced attorney understands the importance of a timely filing and will work hard to ensure the best possible outcome. He or she will make the right moves and help you avoid having a home foreclosure or repossession on your credit report.

Since 1994, Kevin D. Judd has focused on consumer bankruptcy. By helping people with financial debt, he has saved many families from financial ruin. He can assist you with filing for Chapter 13 bankruptcy and will guide you throughout the legal process. Along with filing paperwork on your behalf, his firm will help you rebuild your credit score and regain your footing. The Law Firm of Kevin D. Judd is committed to providing quality consumer bankruptcy services to Washington D.C. and Maryland residents. If you are considering filing Chapter 13 bankruptcy, then we will help you review your legal options. A Maryland Chapter 13 bankruptcy attorney will guide you towards the alternative that best fits your current needs.

Debt Reduction And Debt Consolidation Plans

One relatively simple alternative to Chapter 13 bankruptcy is to re-evaluate your current lifestyle. This gives you the opportunity to reduce your expenses and pay off your debts at a faster speed. By selling your personal property assets, you can take the money and pay off some of your current debt. Selling a second vehicle or putting your house on the market are great ways to reduce your expenses. Other ways include obtaining a loan from a relative or cashing out on your retirement accounts. However, it is important to choose the option that works best for you and your family. Our firm will help you review your finances and come up with a long-term debt reduction plan.

Another alternative to Chapter 13 bankruptcy is debt consolidation. This is where you borrow money at a lower rate to repay other debts that bear higher interest rates. If you have the ability to borrow at a lower rate, then debt consolidation is worth considering. Having a steady job and outside security also make you a prime candidate for debt consolidation. However, you should be wary of any scams or deceitful practices run by debt consolidation companies. If there are any exorbitant fees or outrageous claims, then you should proceed with caution. Additionally, you should check with state consumer agencies and the Better Business Bureau when choosing a debt consolidation company. If a serious complaint has been raised against a company, then you can review the information before making your decision. Our attorneys will ensure that any debt consolidation agreement you sign is transparent and protects your interests.

Workout Agreements With Creditors

Similar to Chapter 7 bankruptcy, workouts are a viable alternative to Chapter 13 bankruptcy. Workouts are modifications of debt that are agreed upon by you and your creditor. Workout agreements include both compositions and extensions. Compositions are contracts signed by at least two creditors where they agree to accept partial payment of the debt. After paying the reduced amount, you are debt free and no longer obligated to the creditor. An extension is a contract signed by at least two creditors where extra time is granted for debt repayment. On certain occasions, some agreements are both compositions and extensions. In these cases, creditors agree to accept less money over an extended period of repayment.

Contract law generally governs workout agreements. This differs from the debtor-creditor rules that govern general creditors’ rights claims. There is no requirement for creditors to enter into a composition or extension. However, most creditors voluntarily enter into the agreement in order to receive payment. Any creditor who does not agree to a composition or extension retains their rights under state and federal law to collect any debts owed. This includes filing for involuntary Chapter 7 bankruptcy against the debtor. With that said, creditors know that composition and extension agreements make it easier for them to get paid. It also helps them avoid the hassle of going through the bankruptcy process. If you are having difficulty establishing a workout agreement, then a bankruptcy attorney will help you negotiate with your creditor.

Contemplating Bankruptcy? A Maryland Chapter 13 Bankruptcy Attorney Will Provide You With Alternatives

Although bankruptcy is a viable option, there are other alternatives that could provide greater benefits. A Maryland Chapter 13 bankruptcy attorney can help you review your options and choose the best overall plan. Debt reduction, debt consolidation plans and workout agreements with creditors are all options that can substitute for bankruptcy.

If you are considering filing Chapter 13 bankruptcy, then you must contact the Law Firm of Kevin D. Judd today at (202) 483-6070 and schedule a consultation. You can also contact us online and send us a message about your case. We promise to thoroughly review your information and look forward to meeting with you in person.

Your gateway to financial freedom.