A Guide to Your Bankruptcy Alternatives
For those facing a challenging financial situation, it might seem like bankruptcy is the only way out. Reports in the media highlight bankruptcy as a way to easily resolve debt challenges. But nothing could be further from the truth. The team here at A New You has many years’ experience helping our clients resolve their debt issues. And we’ve worked with clients to help them recover from their previous financial mistakes. Our team is among the most qualified in the local marketplace to advise on debt settlement, and here we’ll look at a variety of bankruptcy alternatives.
Why Bankruptcy is Often the Wrong Choice
Bankruptcy should be seen as a last resort in the financial services marketplace. Unfortunately, it’s often presented as quite the opposite. This has led to many people misunderstanding the bankruptcy process, causing themselves further financial problems in the process. One of the leading issues facing those who go through the bankruptcy process is that it can take up to seven years before they’re able to build their credit again. This may mean they are unable to buy a house or commit to any other large purchases while they rebuild their financial status after going through the bankruptcy process.
Another important consideration to make when exploring bankruptcy is the expense involved. Bankruptcy can actually be an expensive process to undertake, even for those with limited assets to their name. A person going through the bankruptcy process will have to declare assets to their trustee, and may be required to surrender assets such as housing and vehicles that can be sold to pay back their creditors. A person going through with a bankruptcy will also lose access to each of their credit cards. This may make it impossible to make essential short-term purchases such as groceries while going through with the bankruptcy. The surrendering of assets and credit cards may make the person more reliant on friends and family for help, further deepening their sense of loss and hurting individual pride. It’s clear then that bankruptcy is a challenging process that a person should only begin when they have exhausted all other avenues and alternatives. But what are some common bankruptcy alternatives?
When going through the processes of evaluating their finances, a person may choose to liquidate their assets as a means of avoiding bankruptcy. For example, the person could sell stocks and bonds on short notice to pay for future costs such as their mortgage. Or they could sell their vehicle to help rebuild their savings after a particularly challenging few months financially. While the liquidation process is a good option for those with easily sold, high-value assets, it’s not suitable for those who simply have no resources available.
Debt management involves working directly with a company to communicate with creditors and reduce the overall debt burden. The repayment plan created is usually based on the person’s income and their current debt levels. Once the creditors agree to the plan then the debtor will begin making monthly payments to their creditors based upon the agreed upon amount. There are many issues with going through the debt management process, however.
One possible challenge is that the debt management plan is often devised by a company with direct connections to the creditor. This can create a conflict of interest in which the debt management company works more on the side of the creditor than they do for the person in debt. Another big issue is that if a debtor misses a payment for any reason, for example, they suffer a medical issue, then the creditor can terminate the plan with no notice. This means that under the debt management structure, the creditor retains complete control over the entire process.
Defaulting on the Debt
A person in debt may simply choose to allow themselves to default on the debt. This occurs when they don’t have the resources to pay for the debt or any potential other recourse to recover their financial situation. There are a number of problems debtors face when they default. Chief among these issues is that a debt default can often lead to a court judgment against the debtor. This can have various legal ramifications.
For example, if the creditor decides to take the debtor to court, they may be able to get a judgment garnishing all future wages of the debtor. They may also take away property such as houses and vehicles. A debt default will stay on the debtor’s record for up to ten years, and will impact their chances of beginning a mortgage or making any large purchase in the future. These potential risks and restrictions make the default process one of the least favorable for those considering bankruptcy alternatives.
Questions to Ask When Considering Bankruptcy Alternatives
When analyzing their options, it’s important for clients to first consider their position carefully and review the benefits of each option they have. To ensure they capitalize on the full range of options available to them, those in debt should consider the following questions:
Does Debt Impact Your Daily Routine?
When analyzing their daily routine, it’s important for those in debt to consider the impact their financial issue has on their day-to-day activities. They might not spend time with family and friends for example, for fear that they might have to spend money on a meal or drinks. Or they might have to sacrifice their health needs to pay for food for their children. Millions of people face these types of choices every day, and debt solutions are available.
What are Your Leading Financial Concerns?
Debt can have a significant impact on a person’s life. It can prevent them from moving forward in their personal lives and in building a foundation for the future. It’s important for those in debt to analyze their financial concerns and find a solution that helps them overcome these worries. For example, many spend time worrying that their debt will stop them from paying for their child’s education in the coming years. Or they might worry that their home will be repossessed by the lender. Being proactive on debt can help to avoid this kind of issue.
Are You Ready to Move Forward?
Often, debt is not something that simply occurs over a few short weeks. It’s a problem that is exacerbated over several years and grows out of control over time. And this can make the problem even more difficult to control. For those who have spent many years worrying about their financial issues, it’s important to learn that there is a path forward toward debt relief and specialists are available and on-hand at short notice to help address the problem.
Debt Settlement with a New You is Your Ideal Bankruptcy Alternative
The debt settlement programs from our team here at A New You will help those in debt overcome their most pressing financial concerns. After being introduced to the company, the client is assigned an analyst to their file. Their analyst will then help them to review their file, and will ask them follow-up questions to help gain a better understanding of their current financial position.
The debt resolution program from our team here at A New You thrives on open communication. Our team works with clients to help them understand their debt relief options and to provide them with clear instructions on the best way to reduce their financial challenges. The person will begin the process by choosing a program that works best given their current position.
When considering a debt settlement program, there are three specific elements to review:
If the person has significant assets to their name, these assets will be taken into consideration when selecting program length. The debtor can use these assets to shorten the amount of time they spend within the debt settlement program and speed up their journey on the road to financial freedom.
The monthly payment that the debtor pays as part of their debt settlement is a leading consideration within the A New You programs. The client’s analyst will help them to set a specific payment amount per month that allows them to reduce their costs over time.
Those in debt may set a number of goals through the debt settlement programs offered here at A New You, and these goals can be defined when the program is created. The goal might be to be debt free within a year or to halve the total debt within five months.
Get Out of Debt without Bankruptcy Through A New You
We know the problems faced during the bankruptcy process. These problems can haunt people for several years after the bankruptcy has been finalized. This is why we’re now offering a comprehensive alternative to this difficult process. Turn to A New You for the following:
Affordable Debt Relief
We only get paid when your debt is settled. Our payment is only received when we’ve helped our clients pay off their debt. This ensures that each of our clients are successful in meeting their debt relief objectives and helps protect clients from further financial issues as they move forward in their lives.
Our trusted team has over 16 years’ experience in the debt settlement business. This means we have connections across the marketplace and can help answer any of our clients’ questions based on a proven successful understanding of debt relief principles. During our many years in the industry, we’ve helped thousands of individuals achieve debt relief. We’ve encountered a range of complex financial challenges and helped thousands navigate their way to financial freedom.
Negotiation with Creditors
Few people want to speak directly with their creditor about their financial challenges. Most simply wish for the problem to go away, leading to further debt issues. Our team has many years of experience in negotiating with creditors on debt settlement terms. This ensures we can fight on behalf of our clients and help them achieve the best rates possible for their payments. It’s a commitment to professionalism that has helped clients save thousands of dollars over our time in the industry. .
A New You Is Ready Today to Help Build a Unique Debt Settlement Program
Our team of specialists is ready now to help guide you forward in meeting your debt relief objectives. It’s a process that will give you a new lease on life and a new sense of personal freedom. It’s important not to let debt prevent you from pursuing your personal goals. Call our trusted specialists at A New You now to begin building your program. Your personal analyst is waiting to help answer your questions and help you pay off your creditors for seamless debt relief success.