Are There Any Viable Alternatives To Bankruptcy?
There are several alternatives to bankruptcy, some more attractive than others. 1. Do nothing. Without filing bankruptcy, creditors are free to take all legal actions necessary to collect their debts. Some creditors will take no action at all. Some creditors will sue and obtain judgments, to be followed by the recording of abstracts of judgment which establish liens against all real estate owned by the debtor within the county in which the abstract was recorded, earnings withholdings orders (wage garnishments) and bank account levies. 2. Debt consolidation. There are numerous debt consolidation agencies. Consolidators attempt to get creditors to reduce interest rates, reduce monthly payments, and in some cases, reduce principal. If the debtor is experiencing a temporary cashflow shortage, consolidation may be productive. But for most debtors, consolidation will only provide moderate short-term relief, and is therefore an inadequate long-term solution. 3. Debt negotiation. There are num
