Alternatives

Find a Maryland Bankruptcy Alternative: Get Out of Debt Without Filing for Bankruptcy

maryland bankruptcy alternativesYou and your family may not be ideal candidates for bankruptcy. A good rule of thumb is that if you owe less than about $10,000 in unsecured debt (credit cards, payday loans or medical bills) and are no more than about a month behind on your secured debts (house, car or truck), you may want to consider seeking out a bankruptcy alternative. Our experienced Maryland bankruptcy attorneys can help you seek out a non-bankruptcy resolution, from a range of potential alternatives which may meet your needs.

Is a Maryland Non-Bankruptcy Resolution Right for You?

With a non-bankruptcy alternative, your credit rating may not be as adversely affected by reaching a compromise with creditors. However, be aware that none of these alternatives provide legal protection or stop any pending or potential adverse action from the moneylenders.

Is it right for you? It depends upon the specifics of your financial circumstances, which is why it’s always important to consult with an experienced attorney who can advise you of your options.

What are the Most Common Bankruptcy Alternatives?

Our Maryland bankruptcy attorneys will be able to provide you with more information about the following bankruptcy debt resolutions and help you and your family to decide if one is right for you:

  • Debt consolidation — Although this may not the best option, if an opportunity exists for you to take out a lower-interest loan to pay off some high-interest debt, the opportunity is at least worth exploring. Debt consolidation may be available through a credit counseling organization such as Consumer Credit Counseling Services.
  • Debt reorganization — Assuming that you are not too far behind on any payments, you have a robust income and the moneylenders are at least somewhat sympathetic, a few months of financial juggling may be enough to provide a temporary solution and get you through your difficult time.
  • Debt negotiation and settlement — Many times, debt buyers are willing to settle for 20 or 30 cents on the dollar. If you can offer a lump-sum payment, the debt buyer will probably listen to your offer. Your attorney may be able to negotiate the debt buyer’s report to the credit agencies, thus minimizing the adverse impact on your credit score.
  • Loan modification — Between 80 percent and 90 percent of the borrowers who apply for a loan modification are rejected. The most likely scenario for an approval is if the borrower suffered some temporary loss of income but can now afford to pay off the arrears in full over time.

These are just a few examples of some of the bankruptcy alternative solutions available to you as a consumer who wants to get your finances in order without taking the step of filing for bankruptcy in Maryland.

Our experienced Maryland bankruptcy attorneys are here to consult with you and help you come up with a plan that works for you and your family. Call us at 301-977-4300 to begin discussing your case and which potential non-bankruptcy debt resolution could work best for you.