Nobody wants to file bankruptcy unless it is their last option.  In my office, I have every client sign a paper indicating that they believe that bankruptcy is their last option.

Whenever you look at your options, be sure you look at all of your options, including ones you don’t think you’d like, then pick the one that’s best for you.  Be sure to “rise above the treeline” to see where each road goes.  If can’t see yourself going all the way down a certain road, then should you even take one step in that direction?

Below is a common alternative to filing bankruptcy.  It works, but it is expensive.

Enter Into A Debt Management Plan. 

A Debt Management Plan, also known as bill consolidation, is one where you make a monthly payment to a debt management company, and that company sends the creditors in the plan a monthly payment.

One of the difficulties with this type of plan is that it requires the agreement of your creditors to work, and certain creditors like home lenders, car lenders or pay day lenders will never participate in such an arrangement.  Another difficulty is that you are paying the creditors IN FULL, thereby making this option rather expensive.

About 8 out of 10 people that I see in an Initial Consultation tell me that they have either tried a Debt Management Plan, or a family member has, or they already checked into it.  Each person that I see in an Initial Consultation that is already familiar with this option, tells me that a Debt Management Plan requires a large monthly payment and that they cannot afford it.