4 Alternatives to Bankruptcy in Oklahoma

When you’re buried under a mountain of credit card, student loan, and medical debt, finding a solution can be difficult. When debt collectors keep calling and each mail delivery brings more overdue bills and demand letters, you may even be tempted to declare bankruptcy for financial solvency. While this can be the best solution for an unmanageable debt situation, there are alternatives to bankruptcy that may also work for you.

Lifestyle Changes

Depending on your situation, you may be able to pay down your debt by creating a budget and making lifestyle changes. With a budget, you can identify opportunities to save money and increase the amount you are able to pay your creditors. Possible lifestyle changes include taking a new job or second part-time job. You could also sell assets you no longer want or need, such as second vehicles, and use the money to pay down debt.

Repayment Plan Negotiation

Depending on your debt situation, you may be able to approach your creditors and negotiate a payment plan with better terms. Many of them will accept a reasonable plan, complete with an affordable monthly payment, instead of risk you filing for Chapter 7 and discharging the debt entirely. Even if they don’t agree to a plan, they may consent to accepting a reduced lump sum payment in exchange for freeing you from any further obligation.

Credit Counselling

There are many reputable Oklahoma credit counselling agencies that will help you create a workable debt management plan. This plan consolidates your monthly debt payments and allows you to repay them in full at a rate you can afford. You may even qualify for interest relief. This route is frequently chosen by debtors who have bad credit and would not qualify for a low-interest consolidation loan.

This type of repayment plan can help with credit card bills or medical debt, but are not particularly useful with government debt such as overdue taxes. You are also required to repay your debts in full, even if the interest stops being applied.

Debt Consolidation Loans

Debt consolidation loans enable you to extend their payments over a longer time period at a lower rate of interest. People typically take out an equity loan using their home as collateral, but if you go for this option, be sure that you can maintain the payments. Otherwise, you could lose your home.

If none of these bankruptcy alternatives work for you, filing for Chapter 7 or 13 can give you the opportunity to start over.

No matter how overwhelmed you may feel, remember that you always have options. To discuss your debts and come up with the best solution to your financial situation, contact the Law Offices of B. David Sisson for a no-obligation consultation. Attorney Sisson has helped many clients gain control of their finances in ways that are appropriate to their circumstances, and will use his experience to help you decide whether bankruptcy or one of the alternatives is in order.

B David Sisson


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