Is bankruptcy the only way to stop creditor harassment?

If you are among the millions of Americans struggling with debt, now is the time to explore your options so that you can end the harassment, eliminate the stress, and start living again. For many debt laden Americans, declaring bankruptcy is the most effective method for debt elimination.  However, bankruptcy is not right for everyone and it is important to consider what other options you might have before filing. Our Miami Valley, Ohio bankruptcy lawyers discuss some alternatives to bankruptcy below.

Negotiating With Your Creditors

For some people with debt but also income coming in, it may be an option to try to settle your debt by negotiating directly with your creditors.  A benefit to negotiating with your creditors, as opposed to bankruptcy, is that your credit will not take a hit and you could potentially eliminate your debt sooner.  However, this option will require that you have enough capital to settle your debts. While some creditors may be willing to significantly discount your debt to settle the matter, depending on the extent of your debt, negotiations will not be feasible for everyone.  

Ending the Harassment

If creditors are harassing you and making life stressful, there are ways besides declaring bankruptcy to stop the harassment.  There are several federal and state debt collection laws that you can take advantage of to end creditor harassment. You can send your creditors cease and desist letters to end communications.  You can also notify federal bureaus of creditors that are calling outside of appropriate hours or those harassing you at work.

However, simply ending the harassment will not eliminate the debt.  While your days may go smoother without notifications from creditors, you will still owe large sums to your creditors.  Your creditors could potentially take more aggressive measures to collect these debts, depending on the type of debt. You may face garnishment, liens on your home, and other negative consequences.

Considering Bankruptcy

For those with significant debt that they cannot afford to settle and who want to eliminate their debt, not just hide from it, bankruptcy may be the best option.  With a Chapter 7 bankruptcy, you can erase your unsecured debts, leaving you free to start over financially. While bankruptcy is not right for everyone, it can be a lifeline for many.  Contact a bankruptcy lawyer to get started.