Reducing or Eliminating Debt Without Bankruptcy
This topic is somewhat misleading because
people call me all the time and will tell me they heard
someone get rid of their credit card debt without filing a
bankruptcy or reducing their amounts substantially by
negotiating with their creditors. The truth is if you’re
making decent money and you are borderline in passing the
means test you should definitely consider bankruptcy
alternatives and work hard at reducing your debt. The one
sure way to completely get rid of credit card debt without
bankruptcy is if the statute of limitations has run if they
haven’t filed a lawsuit. Other than that option you will be
able to negotiate with creditors and substantially reduce
your debt if you do it correctly. Doing it correctly means
when you call the creditor you let them know your financial
situation completely, inform them that you can provide them
with a financial statement of all your expenses and your
income. Explain that reducing your interest rate or
settling for a lesser amount will be the only way that you
can pay or otherwise you are on the brink of bankruptcy.
The more detailed you get the better your chances are at a
succesful negotiation. We will examine the most common
bankruptcy alternatives in this section and break them down
step by step for a better understanding.