Bankruptcy Alternatives

How our program helps:

  • Cut your monthly payments in half
  • Reduce your total debt by up to 50%
  • Be debt free in as little as 12 to 48 months

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$1,000

$100,000+



Filing for Bankruptcy: What You Need to Know

Bankruptcy is a legal proceeding designed to help individuals or businesses who can’t repay their debts. The ultimate goal of this process is to give the filer a fresh financial start while providing a fair outcome to their creditors. Although it can give financial relief to many, bankruptcy comes with long-term financial and legal consequences.

There are a few different types of bankruptcy that can be filed in the United States, but individual filers will choose between Chapter 7 or Chapter 13.


When debt prevents you from accessing your basic needs, it’s time to get help.

After Martha was duped by a questionable company, she and Jerry weren't sure where to turn to for help other than bankruptcy. Accredited Debt Relief provided them with the financial relief they needed, giving them a renewed sense of faith and the ability to move on with their lives.


Chapter 7 Bankruptcy

Chapter 7 involves liquidation and discharging all qualifying debts so that you no longer have to make payments. In order to qualify, you must pass the Chapter 7 Means Test1, which the bankruptcy court uses to determine your ability to repay your debts. If you earn less than the average for your state and cannot afford to pay a minimum monthly payment, you may qualify for Chapter 7 bankruptcy.

Commencement of a bankruptcy creates an “estate,” which becomes the temporary legal owner of all your property. The trustee, who is appointed by the bankruptcy court, administers the estate and gathers and sells your nonexempt assets. The trustee then uses the sale proceeds to pay creditors. The court will ultimately decide which assets are exempt.

At the end of the bankruptcy process, the court will discharge your unsecured debts like credit cards, medical bills, personal loans, car accidents judgments, some tax debts and garnishments. Non-dischargeable debts generally include child support, most student loans and most tax debts.

Chapter 13 Bankruptcy

Chapter 13 aims to reorganize your debts. The court will require you to make an affordable monthly payment as part of a strict 3 to 5-year payment plan. If you make all your payments, your unsecured debts may be discharged.


Upsides and Downsides of Filing for Bankruptcy

Although bankruptcy can provide relief to many, it may not be the best option for everyone. It is highly recommended that you speak with an attorney before proceeding with a bankruptcy filing.

Upsides

Debt Discharge: The biggest benefit of filing for bankruptcy is the potential to have your debts discharged. You are no longer obligated to pay back your creditors when your debts are discharged.

Protection of Important Assets: Most bankruptcy filings protect your home and main vehicle, making it possible to continue commuting to work and living in your home.

No More Collection Calls: Debt collectors are not allowed to continue collection activities while the bankruptcy case is pending in court.

Downsides

Negative Impact on Credit: Bankruptcy filings can stay on your credit report for 7 to 10 years. This may cause problems if you intend to apply for credit in the future.

Not All Debts are Covered: Most student loans, alimony, child support and fines or fees owed to the government are not eligible to be discharged.

Long-Term Consequences: Bankruptcy usually means giving up on credit cards or loans until you can rebuild your credit.


Options for Avoiding Bankruptcy

If you’re facing an exorbitant amount of debt, bankruptcy is simply one of many debt relief options to consider. Before filing, research these alternatives:

Debt Management Plans (DMPs) are a type of debt repayment system offered by credit counseling agencies. It’s important to note that DMPs are only one of many options that credit counselors may suggest, as they are also able to break down your credit report, help you create budgets,and provide loan counseling and financial education resources.

Debt Settlement typically begins with redirecting all of your monthly payments to a Dedicated Account. While you raise funds, Certified Debt Specialists work with creditors on your behalf to reach new terms and agreements. Once you have saved enough money and new terms are secured, the funds from your Dedicated Account will be sent to each creditor as part of a lump-sum offer or payment plan. Oftentimes, debt settlement companies are able to work out agreements that are significantly lower than what their clients owed.

Debt Consolidation Loans are new lines of credit, like credit cards or personal loans, that are used to pay off existing debts. These allow you to move multiple debts to a single place, making it easier to focus on one monthly payment. Debt consolidation loans work well for consumers who have fair or good credit. They can also save you money if you’re able to secure a consolidation loan with a lower interest rate than what you’re currently paying.


Bankruptcy Alternative FAQ

Bankruptcy is a serious decision that offers freedom from your debt, but comes at a high cost. You can avoid bankruptcy altogether by taking on as little debt as possible and making all your debt payments on time. If you do find yourself in need of debt relief, be sure to explore other options in addition to bankruptcy, such as debt settlement, debt consolidation loans and debt management.

Debt management programs, credit counseling, debt settlement and debt consolidation loans are all bankruptcy alternatives that can help you get out of debt faster and for less money. A Certified Debt Specialist at Accredited Debt Relief can examine your finances and suggest bankruptcy alternatives that fit your unique needs.

Filing for bankruptcy can damage your creditworthiness and may prevent you from taking on new credit in the future. Bankruptcy filings will stay on your credit report for 7-10 years. Make sure you consider alternative relief options like debt settlement before committing to bankruptcy.


Proven Results From Real Clients

Carl F.

Enrolled Debt: $43,922

Final Debt: $21,403

Savings: $22,879*

Enrolled: 2/10/2020

Graduated: 8/31/2021

Kelli M.

Enrolled Debt: $21,974

Final Debt: $12,797

Savings: $9,176*

Enrolled: 3/22/2020

Graduated: 10/21/2021

Ashley S.

Enrolled Debt: $24,954

Final Debt: $10,634

Savings: $14,320*

Enrolled: 1/1/2020

Graduated: 10/28/2021

* These examples do not include program fees. This is small sample of debt settlements our negotiation team has achieved for our clients. These settlements were obtained for clients who successfully met all of their program terms and received settlement offers. Results may vary, and there are no guarantees that all creditors will agree to settle. These examples are not representative of results in all cases.


Accredited Debt Relief: The Best Way to Pay Off Debt

Accredited Debt Relief has helped customers across the country consolidate and resolve their debts. With an A+ BBB rating, we offer customized financial solutions that can help you pay off your debt obligations quicker. Our experienced team can help lower your monthly payments and reduce what you owe overall. To learn more and receive a free, no obligation consultation, contact us today.


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