Alternatives to Bankruptcy in Detroit

Looking for relief from a financial hardship?

If you are overwhelmed with debt or looking for help during a financial struggle, bankruptcy is one option. It is important; however, to be aware of all options in order to make the best decision for your unique situation. Speak with a Wayne County bankruptcy lawyer from Bryant, Logan, Wheeler Law Group, PLC to discuss your circumstances and the possibilities available. Before deciding upon bankruptcy, explore the alternatives. Some of the options that we may look into would be to consolidate your debts, negotiate with creditors or modify the terms of a loan. Depending on your situation, there are different alternatives.

Alternatives to Filing for Chapter 13 for Foreclosure

If you are facing foreclosure and are considering filing for Chapter 13, you may have other options. You may be able to refinance your home or sell it before a foreclosure sale takes place. Even if you are in the redemption period, you may still be able to refinance. Another option would be to negotiate a forbearance with your mortgage company. Lastly, negotiating for a loan modification is a popular solution. These options may allow you to reorganize and create a manageable plan to get back on your feet.

Debt counseling programs are similar to filing for a Chapter 13 bankruptcy. The agency will assist you in creating a payment plan with your creditors like a Chapter 13 repayment plan, but bankruptcy will not appear on your credit report. The downfall with a debt management program is that you do not have the same protection if you fail to make a payment. Chapter 13 bankruptcy has protections if you miss a payment, but with the debt management program your creditor can pull the plug right away if this happens. Another difference between these two options is that when filing for Chapter 13, some of your debts are often discharged and you only pay a part of your debt. With the program, you have to repay your debts fully. Depending on your priorities and circumstances, you can weigh these two options.

Alternatives to Chapter 7 Bankruptcy

Being overwhelmed with debt can be frightening and stressful. Chapter 7 bankruptcy may be the fresh start that you need to rid yourself of debt. There are other possibilities to consider before filing, including:

  • Signing up for a debt management program
  • Negotiating with your creditor regarding your repayment plan
  • Negotiating for a lower interest rate with your creditors
  • Paying your debts in full

Creditors are often open to negotiation because they would rather receive some sort of payment than not receive anything at all. Lower interest or smaller payments may be a viable solution for both parties. Do not be discouraged, seek help from a bankruptcy lawyer serving Detroit who can assist you in this process.

Debt Consolidation Loan

Consolidating your debt can be a helpful solution. There are two types of loans to consolidate debts, one is done through the equity in your home and one is not. This option allows you to use a loan to repay your creditors and then you only have one payment to worry about, the one to repay the loan. Without using your home, you would make your payments to the company in charge of your consolidation and they will handle the creditors and your debts. If you do use the equity in your home, you would take out a home equity line of credit or use a second mortgage. This option does have some risk because your home is being used as collateral.

Discuss Your Options with a Wayne County Bankruptcy Lawyer

If you are suffering from a financial hardship in Wayne County, contact Bryant, Logan, Wheeler Law Group, PLC right away. We have more than 50 years of combined experience and are knowledgeable when it comes to the alternatives to bankruptcy. Our attorneys are happy to discuss the advantages and disadvantages of all options depending on your situation. Call today to schedule your free case evaluation.