alternatives to a chapter 7 or 13 bankruptcy?
You may wish to look into a debt consolidation loan or
Consumer Credit Counseling. But
watch out for Debt Relief Scams.
consolidation loan would require you to get a loan to pay
off several of your debts. What you would be attempting to do
is to reduce the total amount of your budget to an amount
equal to your monthly income.
If all you
are able to do is to reduce your total monthly outgo to a
point which is higher than your net monthly income then this
method will fail. You will be tempted to use your real estate
as collateral on a debt consolidation loan. This is because
you are currently being inundated with radio and TV
advertisements to use the “equity” in your home as
security for a debt consolidation loan. Most finance companies
will even give you 125% of the value of your home in the form
of a loan.
This is a
trap for the unwary! Before you try to use your home as
security for a debt consolidation loan check with our office
or a credit counselor. You may lock yourself into a trap.
Whether you try a debt consolidation loan or Consumer Credit
Counseling as an alternative to bankruptcy, please explore all
of your alternatives before you choose one of these methods;
especially a debt consolidation loan secured with your home.
is budget or credit counseling. If you think such
counseling would help, you should contact the Consumer Credit
Counseling Service in your area. An other is a debt
consolidation loan. Attorney Bodor will explain
these options to you at your conference with him.