Even if you find yourself in a great financial distress, there are some alternatives to bankruptcy that you might want to consider.
The first thing you might want to double check is if you are in a “judgment proof” situation. If you don’t possess anything that judgment creditors can collect from you, then you are considered “judgment proof”. For example, if you don’t own any assets; you work a very low paying job or are not working; or your source of payment is exempt from creditors (social security benefits or any other public entitlement benefits) then you might be judgment proof. In those cases, there might not be a reason to file for bankruptcy and the best solution might even be to do nothing.
Also, if the majority of your debts are non dischargeable, there is always alternative solutions. If you owe past due child support; you can’t afford your student loan or you are behind your mortgage you may be able to contact the assigned agency to explain your situation and obtain repayment options. Keep in mind that most creditors will be willing to negotiate with you rather than starting legal proceedings.
If your main concern is harassment from the creditors, federal & state debts collections laws can protect you from abusive and harassing debts collectors.
Finally you can obtain help from credit or debt counseling agencies. We personally can refer you to some of them or you can find a list of agencies state by state at http://www.usdoj.gov/ust.They can help you come up with a repayment plan that will help you repay your debts and this way no bankruptcy will appear on your credit record. Nevertheless, if you miss one payment you won’t be protected against creditors (which is the case in Chapter 13) and you will also have to repay the full amount of your debts as well as a fee to the agency that assisted you.