Non-bankruptcy options include:
Credit Counseling (advertised on TV) - this process has resulted in the IRS shutting down many
of these fraudulent agencies who were stealing your money. Their basic scheme was to charge you exorbitant amounts of money
to send tiny payments to your creditors. This offered you zero legal protection and often just left you owing more than you
started with plus all the wasted money paid to the credit counselor.
Home Equity Loan - danger, if you miss your payments they
can take your home. Most of your creditors cannot take your home if you do not pay them, but if you consolidate your bills into
a home equity loan, your home is the collateral and can be repossessed for non-payment.
Borrow more money - if you are lucky
enough to get a very low interest rate loan with payments you can afford, and you are disciplined enough not to go out and charge
up all your credit cards that you pay off with this loan, then this might work. However most people who try this end up in even
more debt, and some of that debt might be non-dischargeable if a bankruptcy is ultimately required.
Settle with creditors - sounds
too good to be true, and it usually is. They send you a letter saying they will take less than what you owe on your debt.
You quickly pay them off and think you are done. Later you receive a 1099 from them claiming you made income of the amount of
debt you did not pay and now the IRS wants taxes on your "income."
Just don't pay - if bankruptcy is not an option for
you (morally and/or legally) you may be forced to just not pay your debts and see what happens. Typically the creditor has a
right to sue you within 4 years of your last payment or other action on the account. If they get a judgment and if you own non-exempt
property (as defined by your state law, not by bankruptcy law) at any time the creditor can use that judgment to seize that property.
In Texas non-exempt property includes cash and money in the bank, so it is possible for them to seize your paycheck as soon as you
deposit it or cash it.
To find out more, please call or email us to schedule a free consultation to see if you qualify.