Alternatives to Bankruptcy Worth Considering

Before filing bankruptcy, consider these alternatives: Debt consolidation loans can reduce interest rates and simplify payments.

Nonprofit credit counseling agencies offer debt management plans that negotiate lower interest rates with creditors.

Debt settlement involves negotiating to pay less than you owe — but damages your credit and may result in taxable income. Chapter 7 bankruptcy, despite its reputation, often results in faster credit recovery than years of missed payments..