Given the customary nature of the debtor in a Chapter 13 case as someone who generates a relatively regular and dependable income, he or she may have other options available that do not involve filing for bankruptcy protection. These alternatives are numerous in nature and should be carefully tailored to the specific situation of the debtor, but two examples of these alternatives to bankruptcy include:
- Negotiating a settlement – Many creditors will accept less than full payment on a debt that’s seriously delinquent, as the prospect of obtaining no payments at all is very real to them if you file for bankruptcy protection.
- Designing a repayment plan – If you cannot afford lump sum payments to your creditors, you could provide them with a repayment plan that over time allows for them to reclaim at least part of what they’re owed.
Of course, there could be other solutions available, but rather than attempt to handle this problem yourself, you need to speak to an Oklahoma City bankruptcy attorney who understands not only the options available to them but also the laws that govern these situations. For instance, it’s possible that at least some of your debts have moved beyond the statute of limitations for collection and are no longer enforceable.