Bankruptcy alternatives are sought by millions
of Americans every year. The goal of our Bankruptcy alternative is
to not only provide financial relief but also to relieve the
everyday stress and anxiety that comes with being overwhelmed with
debt. More specifically, the goal of Franklin Debt Relief is to
provide our clients with an affordable program payment and help them
get them out of debt on the accounts they enroll as quickly as
possible. A consumer who enrolls in our “New Deal” Bankruptcy
alternative program may be able to settle their debts for less than
they actually owe, all while avoiding the harsh consequences of a
If the following statements apply to you, then
you may need to seek an alternative to Bankruptcy.
You don't have any savings.
You lose sleep thinking about your debt.
You make minimum payments on your credit
You get calls from debt collectors.
You're afraid to look at your statements each
On the same token, you have no idea how much
You use credit cards for things you should buy
with cash, such as
groceries, gas, or utilities bills.
Your debt is putting an added stress on your
Your credit card debt to income is at or near
You have more than three major credit cards.
You lie to your spouse or other family member
about your spending or hide credit card statements from family
After you pay your credit card bill, you
increase your balance by the same amount (or more) the following
You're at or near your credit limit on your
You write a check hoping that you have enough
time to make a deposit before it clears.
You take out cash advances on your credit card
to pay other bills.
You've been denied credit.
You’ve bounced checks.
If you lost your job, you would have no
ability to make your bills.
Debt Settlement as a Bankruptcy Alternative
This is the Bankruptcy alternative offered by
Franklin Debt Relief. In our debt settlement, negotiators work with
creditors to lower the amount that a client owes. This may be an
appropriate debt relief option for consumers who are overwhelmed
with their minimum payments or who have already fallen behind. Our
Bankruptcy alternative also works well for consumers who do not own
a home, lack the equity or credit necessary to be able to refinance
or get a second mortgage that can no longer afford their debts. In
some cases, it is the fastest and least expensive way to become debt
free besides Bankruptcy, assuming that the client successfully
completes the program and their accounts are settled.
Credit Counseling as a Bankruptcy
This type of Bankruptcy alternative involves
working with creditors to lower interest charges. The average client
of a credit counseling program is able to be debt free in as little
as 5 years. Credit counseling is considered a safer but more
expensive option than debt settlement because you do not have to
become past due in order to realize the benefits of this type of
Chapter 7 Bankruptcy
In a Chapter 7 Bankruptcy, a consumer is freed
of their unsecured debt obligations (credit cards, medical bills,
repossessions), but in exchange they are ordered to turn over
certain non-exempt property to the courts to be sold and paid to the
creditors. For consumers without any income or assets, this is an
ideal debt relief solution. Since the credit implications can be
severe, however, this option is considered a last resort for most
consumers. Since Franklin Debt Relief is not a law firm, one should
counsel an attorney for advice about this option.
Chapter 13 Bankruptcy
In a Chapter 13 Bankruptcy, a consumer is put
on a payment plan in which all of their disposable income is turned
over to the courts for up to 5 years (or until the debt is paid back
in full, whichever is first). For consumers who have fallen behind
on their secured debts (automobile loans, mortgage loans), this may
be appropriate debt relief solution. Of course, one should seek the
advice of a qualified attorney before making any such conclusions,
however. For consumers with credit card debt, this option may make
very little sense. After all, there are numerous debt relief options
available that will not only affect your credit less negatively, but
you may also pay far less as a total cost.
Liquidating your Assets as an Alternative
For consumers who own a lot of personal
property, asset liquidation may be an appropriate alternative to
Bankruptcy. In fact, this may be exactly what happens in a Chapter 7
Bankruptcy depending on your state's exemptions and what property
you own, minus the severe credit impact. In other words, if you do
not qualify for a Bankruptcy alternative program like debt
settlement or credit counseling and you own a lot of assets, it may
be foolish for you to not sell it off on your own in order to pay
back the creditors rather than file Bankruptcy. As always, speak
with an attorney if you need legal advice about your situation.