Some of the most common methods that people use as alternatives to bankruptcy is to duck and dodge creditors.  Ducking and dodging your creditors is very tough.  The credit industry and the collection agencies industry are huge.  I believe they’re maybe a trillion dollars of the market this past year, and only a small percentage of that market is actually collecting.  So they’re gainfully employed is what I’m saying.  These collectors, they have no shortage of work, and if they find your Social Security number, they find out where you live and your job, where you work.  These are all things that can be done through public information, and they will find you, and they have lots of time to find you.  People think a statute of limitations will occur, which is true, sometimes it does occur, but more often than not, they will find you before that statute of limitation is over. 

 

They can find you in many, many ways.  The main source is public information, such as phone books.  There are different websites that do actual searches of public records, anything from your voter registration card, if you’ve ever voted, and if a debtor has ever voted.  With public records, it’s easy for a creditor can look at their registration and find where they live.  Now they have a place and address to serve you.  It’s very hard to duck these guys, especially if you have a lot of them, a lot of creditors coming after you, ’cause once one creditor finds you, then that public information (after you’ve been sued), then the other creditors are going to find you just through the lawsuits in your county anyways.  Just through the court system, they’ll find you.  It would probably be a good idea to seek bankruptcy advice just to know your options.

 

So bankruptcy alternatives, they are not the greatest thing, and the reason being that if you file for bankruptcy, the power’s in your hands.  The power switches from the creditor to you, the debtor/petitioner.  The power comes back to you.  There’s no negotiation with the creditors.  If you file a Chapter 7, those creditors are going to be discharged, meaning that those debts that you have will be eliminated.  Chapter 13, not only do they not have the power to negotiate – however, if they do not respond to a bankruptcy notice and file a Proof of Claim, then they get discharged as well.  So claiming bankruptcy really is a tool that’s going to give a lot of power to the debtor and not the creditors as reversed in the bankruptcy alternatives. 

 

So those are the reasons why bankruptcy alternatives are not as good as bankruptcy, and bankruptcy is really the better choice because it will put the power back in your hands.  Now I don’t suggest that you go it alone.  I would seek the advice and counsel of a qualified Chicago bankruptcy lawyer who is known to be the authority on the subject.  There are plenty of attorneys that are claiming to be versed in bankruptcy law.  Make sure that the attorney that you hire has a proven track record of success.  Filing for bankruptcy is a big step that should not be taken lightly.  Visit the attorney’s office and ask plenty of questions.  You should get a feel from the responses you receive as to whether the attorney really has a handle on the particular area of law or not.  My best advice as with any other area is to do your homework.