The Chapter 7 Bankruptcy Alternative: Non-Bankruptcy Debt Workouts
The possibility of filing Chapter 7 bankruptcy can bring anxiety, fear of the unknown, and a feeling of failure. However, the reality is that bankruptcy does just the opposite for those who are able to successfully get relief. Bankruptcy helps get people back on track financially and helps them resolve their debts. Since filing Chapter 7 bankruptcy or any other form of bankruptcy seems to be the last resort for most, and may not be the best option for you, there is another option that can be explored — a non-bankruptcy debt workout.
What is a Non-Bankruptcy Debt Workout?
Essentially, a workout is an out of court process between a person and his or her creditors. The process includes an agreement for repayment of debts. The agreement is negotiated without the complexities of the bankruptcy or courtroom process.
The Benefits of a Non-Bankruptcy Debt Workout.
A key benefit of a debt workout is that it is significantly less expensive than a Chapter 7 bankruptcy. There’s little to no court costs and the process is much faster. For a person that has tons of debt and creditors, this debt workout alternative is a huge benefit, especially if creditors can be persuaded to take less than the full amount owed. Additional benefits of a non-bankruptcy debt workout, besides the ability to discharge debts, include:
- The agreement is voluntary between the debtor and creditor
- The agreement is negotiable
- Avoid attaching bankruptcy to a debtor’s name or record
- The debtor has future rights to bankruptcy
If a debtor is looking for benefits without being attached to a full-on bankruptcy and the stigma that comes along with it, a non-bankruptcy workout could be the solution you need.
Are There Other Advantages to a Non-Bankruptcy Debt Workout?
Yes. A non-bankruptcy debt workout allows for more flexibility. For example, a debtor can request an extension of time to pay the debt owed. If agreed upon by the creditor, the terms of the agreement remain fulfilled, and there is no case to get dismissed.
How Do I Know this Alternative is Good For Me?
Depending upon your unique situation, it is best to discuss the matter with a qualified West Palm Beach bankruptcy attorney. The attorney will help you determine whether a non-bankruptcy debt workout is the proper route for you and the debts you’ve incurred. If a debt workout is not the best option, the attorney may recommend additional bankruptcy alternatives and work with you to make sure you receive fair treatment from creditors and other parties in the process. Bankruptcy, work-outs, and other methods of dealing with debt are tailored
Let Us Help You Today
Filing bankruptcy may be the last thing you want to do to yourself and your family. But there are several bankruptcy options and alternatives that can provide the relief you need. When you need help exploring all avenues and deciding on a bankruptcy or non-bankruptcy relief option that’s best for you and your debts, contact the West Palm Beach Chapter 7 bankruptcy attorneys at Kelley Fulton Kaplan & Eller at 561-264-6850 for a consultation. We are here to help you find the best solution to your financial problems, so don’t hesitate to contact us for help getting back on your feet.