Bankruptcy Alternatives Solutions

If looking to become debt free, our network of bankruptcy alternatives may be able to help. We receive thousands of inquiries daily in reference to our to options to avoid bankruptcy. The alternatives include but are not limited to; debt consolidation, debt settlement in addition to other debt relief type programs. The advisors at consolidate debt will explain in detail the differences between the programs and how these solutions may be able to help. If any chance exists to avoid bankruptcy, it should be done as by filing will destroy the consumers credit.

If your contemplating filing bankruptcy, we ask to you stop immediately. It's imperative that you talk to one of our advisors at consolidate debt before you proceed with talking to a lawyer. When a consumer goes to file bankruptcy, a negative mark may be reflected on the consumers credit report anywhere from 7 to 10 years. In some studies, when applying for loans the lenders will ask if the consumer has ever filed. If a consumer can avoid filing bankruptcy, it's highly recommended to avoid it.

When a consumer goes to file bankruptcy they are legally declaring that they can no longer maintain their debts on the own and in essence need help to resolve the outstanding debt. An excellent way to avoid filing for bankruptcy, is through a traditional debt settlement program. Although creditors tend to request anywhere from 2 to 4% of the balance as a minimum payment, when doing settlement a payment as low as 0.5 to 1.8% can be obtained.

Here are a few reasons as to why consumers tend to look into filing bankruptcy:

1. Balances will not move
   A common reason as to why consumers file for bankruptcy is due to the fact that the balances are just not moving. Consumers tend to make minimum payments on their credit card or loan balances at around 2%. So given a consumer has a $10,000 balance and is paying $200 a month with a high compounded interest rate, this balance will not move downward. Unfortunately, if the minimum payment of $200 wasn't already enough, the only way to make a balance move is to pay two or even three times the minimum every month. It's usually when these balances don't move, as to when consumers seek bankruptcy as an option.
   
   
2. Negotiating with creditors have failed
   Many consumers think they can call their creditors to request lower interest rates, minimums and possibly a balance reduction. In most cases, consumers cannot do this. It's for this reason as to why debt consolidation companies have a non-profit status, whereas debt settlement companies usually are attorney based. It's best to seek professional advice when trying to negotiate. Given the consumer actually reduces the interest rate, it's only a temporary bandaid.
   
   
3. Loss of employment, reduced income.
   With unemployment expected to hit 15% in 2011, more and more consumers are finding it difficult to make the minimum payments, let alone do option one as explained above. With this being said, consumers are in a state of hardship. So if their making just the minimum, balances will not move. The hardship programs in these bankruptcy alternatives, can yield a lower payment and also work in helping your balances move.

Solutions instead of bankruptcy

The solutions available by consolidate debt are for unsecured debts only. Unsecured debts are debts such as credit cards, collections, medical, repos and other debts that do not require a source of physical property. For example, debts such as mortgages, cars, motorcycles, are usually secured debts. When filing for Chapter 7, Chapter 11 or Chapter 13 bankruptcy this will put a serious negative mark on your credit score.

The debt relief industry in general will try and offer a solution that will avoid you from filing bankruptcy. Several solutions exist, and a few of them are listed below:

• Debt Consolidation
• Debt Settlement vs. Debt Consolidation
• Credit Counseling

The bankruptcy alternatives offered by consolidate debt can help consumers become debt free. Our agency is contracted with the leading debt relief professionals and offer multiple quotes in one discussion.