Alternatives To Bankruptcy–Is Bankruptcy The Best Option?

by Adrian Lapas, Esq.

October 26, 2012

In my prior posts, I discussed various alternatives to bankruptcy.  I discussed debt management plans; debt settlement, and other strategies.

So, this brings us to bankruptcy.  Is bankruptcy the best option?  For most consumer debtors, bankruptcy is the best option.  Though, it takes a competent professional to help you with the decision.

Generally, in comparison to a debt settlement or a debt management plan, bankruptcy can be far cheaper.  As discussed in my post, in a debt settlement or debt management plan, you can pay a whole lot more than you will pay to a bankruptcy attorney.  Also, if some creditors don’t settle with you, you will still owe those debts.  Generally, with bankruptcy, creditors don’t get a vote.  The creditors will be discharged and most bankruptcy attorneys can tell you with a reasonable degree of certainty what will happen with a potential bankruptcy case.

Additionally, the debt settlement industry has been rife with bad actors.  So much so that the FTC has issued numerous rulings and instituted legal actions against several.  Before you think about engaging a debt settlement agency, you really need to do your homework and go in with your eyes open.

When you engage a bankruptcy attorney, the attorney must answer to the state licensing board.  Also, any fees charged are subject to the bankruptcy court’s supervision.  So, you are less likely to run into issues that cannot be resolved with a bankruptcy attorney.

That is not to mean that bankruptcy is appropriate in all circumstances.  For example, if you have property over and above what you can exempt that you do not wish to lose, then bankruptcy may not be your best option.  However, once again a bankruptcy professional can best help you make that decision.

In summary, bankruptcy can be your least expensive, most effective means of dealing with your debts.  For most people dealing with overwhelming debt, it makes more sense to talk with a bankruptcy attorney and find out the real deal than wasting your time trying alternatives that will lead to bankruptcy in the final analysis.

If you are facing overwhelming debt, call one of the outstanding professionals listed here.

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Adrian Lapas, Esq.

I've been practicing bankruptcy law in North Carolina since 1993, and am certified as a specialist in consumer bankruptcy law by the North Carolina State Bar.

Last modified: October 26, 2012