Alternatives to Bankruptcy - Fresno County
Most individuals consider alternatives before filing for bankruptcy in Fresno County. Depending upon your particular situation, you may be able to take advantage of certain alternatives that can prevent the need to file for bankruptcy. However, you should objectively consider the facts regarding alternatives, and whether they will prevent the need for bankruptcy, or just prolong the inevitable.
Making Payment Arrangements in Fresno County
If you are only one or two months behind on your bills, you may be able to catch up via payment arrangements. Payment arrangements work best as an alternative when you have steady income, and a definite plan on how to catch up on past-due bills while remaining current on other bills that you owe. Some creditors, such as mortgage lenders, have a definite incentive to work with you, while others may be less willing to offer alternative payment arrangements. Be fully objective when you are considering making payment arrangements, and be certain that you will be able to see the payment arrangement through to the end of the agreement - if not, you could see penalties and interest that will make it even more difficult for you to catch up.
Getting Credit Counseling in Fresno County
Another alternative, if you are trying to avoid bankruptcy and have a regular income, is to look at credit counseling and debt consolidation services. These non-profit organizations work with your creditors to establish a payment plan that will let you catch up on your bills, while avoiding fees and penalties for late payments. However, not all credit counseling services are reputable, and even if they advertise their services as non-profit, that is no assurance that the company is legitimate. If you want to take advantage of this type of alternative, you will need to do your research and make certain that you are dealing with a reputable company. You should also be prepared to pay a nominal monthly fee for this service, for the entire duration of the payment plan.
Payment arrangements and credit counseling services may show up on your credit report as well. Some companies report that the account has been turned over to a credit counseling service, which can hurt your credit score, even though you are making timely payments. It is in your best interests to find out how your creditors will handle the credit counseling service, or if they will work with a credit counseling service at all - some creditors won't, and you'll be expected to make payments as normal.
These bankruptcy alternatives are best suited to individuals who need assistance with budgeting and discipline, rather than real financial relief. If you are seriously in debt and need help, alternatives may only delay the inevitable, causing you additional stress and more money in the long run. Get advice from reliable sources, such as an expert in Fresno County Bankruptcy Law before you make your decision. Our premier Fresno County Bankruptcy Law Firm offers a free initial case evaluation that can help you to understand the benefits of filing for bankruptcy in Fresno County. Contact us today and get your free, no-risk case evaluation today, and make an informed choice about your financial future.