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Bankruptcy Alternatives
Bankruptcy doesn't have to be your first option, and given the harsher bankruptcy laws recently passed by the Bush Administration, it probably shouldn't be. Among the more popular choices is consumer credit counseling, but you have to be careful, because many of the agencies are dubious, and there nonprofit status can be a little on the sketchy side. Oftentimes, with credit counseling, the end result is the same amount of debt plus credit counseling fees, which can often be counterproductive. Another option is simple budgeting, but, really, if you are in a bankruptcy situation to begin with, how far are you going to be able to stretch your limited funds. Fortunately, if you are already destitute, you can be considered "judgment proof," so even if creditors obtain judgments, they couldn't take your property or garnish your wages. If bankruptcy is your last option, however, because of the recently passed bankruptcy laws, there is a very good chance that you won't be able to liquidate your debts through Chapter 7, and instead will have to opt for Chapter 13 bankruptcy, which forces you to repay your debts on a government mandated reorganization plan. The long and short of it, unfortunately, is that - though Legal Database would love to help - bankruptcy alternatives are limited.