Alternatives to filing bankruptcy

Hi Dupont

Welcome to the forums.

Bankruptcy is considered at those situations when you are unable to make payments to your creditors due to existing financial problems. Once you have filed for it, all the collection calls will immediately come to a stop and no legal actions can be taken against you.

Before filing bankruptcy, it is always necessary to know that this is considered to be the very last resort when no other options can work for you. This is a negative remark that will hit your credit file for 10 years. You will get a R9 rating which indicates the same results like a bad debt or an account in collection does.

Following options should be considered before you have finally decided for bankruptcy.

• Arrange for making payments is the best thing that you can do to avoid filing bankruptcy. A person who is aged and without any judgment should not opt for filing bankruptcy.
  
  
• Talk to your creditors. They are always trying hard to collect the money from you. If you are willing to make payment arrangements, they will extend some benefits to you. Your accounts will be settled for a very less amount and you won't have to consider filing bankruptcy.
  
  
• Take a counseling program to solve the existing debt related problems. You will be offered easy monthly installments at a lower rate of interest. Also, financial charges and late fees will be eliminated from the total amount and you will be paying a comprehensive amount in the credit counseling program.
  

Have a professional discussion with the debt counselor and know about your better repayment options other than filing bankruptcy.

Regards
Roxette