If you are dealing with financial troubles, you have plenty of options besides declaring bankruptcy. While filing for bankruptcy is a good option for some, it should be a last resort for everyone with an unpaid debt. Below, we take a look at a few alternatives to bankruptcy.

Negotiate With The Creditors

Ever debtor has the option to negotiate with his creditors. Oftentimes, creditors will accept a very small sum of money to settle the debt in order to avoid future collection efforts including the high cost of filing a civil suit in court. Some creditors will accept 20 to 30 percent of the total debt owed in a settlement. Consider selling some of your assets to pay off your creditors once and for all.

Hire A Financial Consulting Firm Or A Credit Counseling Agency

A good number of debtors are intimidated by creditors and would rather not directly communicate with them along with collection agencies. If you aren’t a good negotiator or if you don’t like dealing with the personalities from the creditors, get help from a financial consulting firm or a credit counseling agency. They’ll help you determine your best course of action and negotiate with creditors to find the best possible debt repayment arrangement. According to D Thode &Associates, this will help you get out of debts as fast as possible while saving you the trouble of negotiating directly with creditors.

Stop Creditor Harassment

If you are tired of creditors calling your cell phone and home phone to demand that you make a payment, don’t rush into bankruptcy. You can stop harassment from your creditors by crafting a letter indicating that you want all debt collections communications to be made by mail instead of by phone. Send this letter to all of your creditors certified mail return receipt requested. This way, you’ll have proof that they received your request and they’ll be breaking the law if they continue to pester you by phone.

Battle Creditors In Court

If your creditors decide to sue you for your debts, you can provide an “answer” to the summons and complaint that you are served. By providing an answer, you avoid having a default judgment issued against you and you’ll be able to argue your case in court. If you put up a fight, there is a chance that the creditor will slip up and miss key deadlines or simply dismiss the case because they have too many defendants to pursue. Do some research online to find out common debt defense strategies that have worked for debtors in the past.

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