Bankruptcy Alternatives - Before Declaring Bankruptcy Consider Other Debt Relief Options

May 11, 2010 - PRLog -- Are you looking for bankruptcy alternatives? If yes, you are doing the right thing because by avoiding bankruptcy, you will not only be able to have a healthy financial future but at the same time, you can also eliminate at least 50% of your unsecured debt. It is therefore better that, before declaring bankruptcy; you consider your debt relief options like debt management, debt consolidation and debt settlement. All these methods will help you to get rid of your debt but the last option will definitely help to eliminate at least 50% of the unsecured debt that you have and thereby help you to avoid the negative impacts of bankruptcy!

Debt settlement is no doubt one of the best bankruptcy alternatives when your unsecured debt is over $10,000. If this happens, the first thing that you need to do is to contact a professional debt settlement company. A professional company knows the loopholes in the banking system and therefore, they can properly negotiate with the creditors and earn a generous settlement deal for you.

Once you contact a professional company, the negotiator from that company will ask you to stop paying the creditor and go delinquent. This is a tough thing to do but once you do that, it will be easier to prove that you are in financial troubles and you cannot pay. After you go delinquent, the creditor will wait for a period of 90 to 120 days and then sell off your debt to a collection agency for as low as 20-30 cents on the dollar. It is then that the professional negotiator from the settlement company will contact the creditor and offer a better deal of 40 cents to 50 cents on the dollar which will mean 100% ROI for the collection agency and at the same time, it will also mean 50-60% savings for you.

Since, the deal offered by the negotiator is a better one; the creditor will readily agree to it and will eliminate at least 50% of your unsecured debt! It is therefore always advised that you look for bankruptcy alternatives instead of directly filing for bankruptcy.

If you have over $10,000 in unsecured debt it may be a wise financial decision to consider a debt settlement. Due to the recession and overwhelming amount of people in debt, creditors are having no choice but to agree to debt settlement deals. To find legitimate debt reduction help in your state and get free debt advice then check out the following link.

http://www.creditcarddebtnegotiations.com