This is a common question that many debtors ask when they first consider bankruptcy. Bankruptcy can feel scary, so looking at the alternatives is a good move. If you feel you may be able to pay off your debts if you could just spread out the payments a little, you may want to explore these other options first.
First of all, you should understand that bankruptcy is unique. Bankruptcy may be a good fit if you are facing insurmountable debt, and you don’t have the income to catch up on your payments. No other option will carry the ability for you to eliminate bills and start with a clean slate. After reading about these alternatives, consider whether you think you can successfully fight your way out of debt with them, or if you’d just delay a bankruptcy filing that could have given you a fresh start sooner.
There are some options that you may consider if you feel your financial situation is not so dire. These options are typically open to those who have uncomfortably high debts with monthly payments that significantly impede their ability to cover day-to-day expenses, but they are still able to make their payments. If you have a regular monthly income and don’t expect to incur significant additional debts in the near future, these alternatives may work for you.
As mentioned above, none of these options will give you a fresh start or eliminate all of your bills, but in some circumstances they may be a preferable alternative to filing bankruptcy.