Are there any ways to get out of debt, without filing for bankruptcy or making huge monthly payments?

Bankruptcy should remain as a final resort for those in debt. There are two forms of bankruptcy available to individuals in the United States. Chapter 7 is liquidation bankruptcy, where the debtor’s assets are place in control of the bankruptcy court and sold to repay creditors. Before resorting to Chapter 7 however, Chapter 13 bankruptcy should be considered, in which all debts and possessions are maintained, but the debts are restructured through a payment plan developed between the debtor and creditors through a bankruptcy trustee.

Though both of these options have many benefits, such as the major benefit of debt collection relief through the “automatic stay,” there are many disadvantages that should keep most individuals from petitioning for either form. In addition, prior to petitioning for bankruptcy, the debtor must complete credit-counseling courses. These courses should provide insight on how to avoid taking the step to bankruptcy.

In essence, the strategies taught in those courses, such as structuring payments to finish out those with the highest interest rate, are the same as those used to reorganize an individual’s debts through Chapter 13 bankruptcy. They can be just as effective, but at the sole effort of the debtor, rather than with the assistance of the bankruptcy court and cooperation of the creditors.

Talk to a Bankruptcy Lawyer about other options, such as debt settlement litigation, and find out what solutions are best for you.

Good luck.