Absolutely not. There are several alternative debt relief options you should consider. You can consider debt settlement with each creditor for a lumpsum payment or installment plan, a global settlement with all your creditors to repay a percentage of your debt (usually between 40%-70%) paid in installments for a monthly fee you can afford. Debt consolidation to reduce your interest rate is also a viable option. While bankruptcy tends to be the fastest and most affordable option, some people prefer to spend more $$ over filing bankruptcy. That is, so long as you take into consideration that you may not qualify for a debt consolidation loan, or some of your creditors will refuse to settle for less than the full balance owed. The key is to figure out what is best for you and actively pursue it.
If you’re in debt, having trouble paying off loans, or just overwhelmed and not sure what to do, book a free consultation with our Honolulu-based bankruptcy attorneys. Their expertise and understanding can help guide you through your options.