When an individual or business has accrued too much debt and cannot afford to pay it back, they might consider filing for bankruptcy. There are different types of bankruptcies a person can file for however, those who choose this route can expect to have their finances thoroughly reviewed and their assets valued and potentially liquidated. If an individual is uncertain as to whether they should file for bankruptcy, they should consider some alternatives and consult with a Tulsa, OK bankruptcy lawyer.
Alternatives to Bankruptcy
If a person or business isn’t ready to file for bankruptcy but needs help getting a handle on their debt, they might consider doing one or more of the following:
- Negotiate with creditors.
The ultimate goal of a creditor is to recover the money that is owed to them. When they are unsuccessful at doing this, they will either agree to settle with the debtor or sell their debt to another company. Either way, if a debtor owes money to a creditor but doesn’t have enough to satisfy the entire debt, they may negotiate with the creditor or the company that bought their debt until a fair agreement is reached. For example, let’s say a debtor owes a single creditor $10,000. The creditor may agree to accept $7,000 from the debtor so as long s/he agrees to make monthly payments to pay down the debt. If the debtor is able to negotiate with all creditors, s/he may not need to file for bankruptcy.
- Consolidation loans.
Given a debtor qualifies for this option, they could consolidate their debt with a loan. Rather than having to pay multiple creditors per month, a debtor would only need to pay on the loan. A consolidation loan would reduce the monthly payments a debtor is paying and help them bring down the balances that are owed to creditors.
- Credit counseling.
There are plenty of companies that provide credit counseling to individuals whose debt has become unmanageable. These companies will typically consolidate all of a person’s debt and allow a debtor to make one payment which is then broken up so that all creditors receive money. Although this is similar to obtaining a consolidation loan, with credit counseling companies, a debtor is provided with assistance.
- Disputing certain debt.
If a creditor has taken legal action against a debtor for money that is owed but that debt has been disputed, the debtor can fight the action in court. This may or may not result in the debt being wiped away.
For those who need more information on filing for bankruptcy in Tulsa, OK, contact The Henson Law Firm, PLLC at 918-551-8995. The Tulsa bankruptcy attorneys at The Henson Law Firm, PLLC are happy to help debtors under the bankruptcy process and answer any questions or concerns they may have.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.