More Than Just Bankruptcy
Bankruptcy is not the right solution for everyone. In fact, there are many reasons not to file for bankruptcy relief. Filing for bankruptcy relief can potentially put significant assets at risk, or you may not qualify for the type of bankruptcy that would otherwise be the best option. Every case is different, and there is no single solution.
An experienced bankruptcy attorney should be able to advise you on whether assets will be safe or whether you qualify for a specific type of bankruptcy. However, a good attorney will also dive deeper to make sure that it is truly in your best interest to file and present alternatives to bankruptcy.
Debt Negotiation: Sometimes it may be better to work with the creditor and settle your accounts without filing for bankruptcy relief. It is often better for your credit score and can potentially offer a tremendous amount of savings compared to some bankruptcy options. This works well for individuals looking to rebuild or seek new credit quickly. Businesses also prefer this option because it allows them to continue operating without business interruption and without a costly, or cost-prohibitive, Chapter 11 reorganization.
We negotiate directly with your creditors to reach a favorable settlement and payment terms that work for you. Over the years we’ve been very successful helping individuals and small businesses avoid bankruptcy by settling credit cards, personal loans, business lines of credit, and private mortgages.
A few words about debt consolidation:
Debt consolidation often comes up as another option, but it is almost always a bad strategy. Many companies try to sell you on making monthly payments directly to them and they will work with your creditors to pay off your debt. Three issues arise with these companies:
- They aren’t saving you much money because any discount they may be able to obtain is wiped out by the fees that they charge.
- When you send your payments to these companies, they take their fees first before they even start working with your creditors or sending any payments.
- Since you are not paying the creditors directly and not paying on the creditors’ terms, you have no protection and they still can bring lawsuits against you. These companies will not defend you. Don’t leave yourself exposed.
At Zimmelman Law, we take the time to get to know our clients and understand their goals. This is how you can be certain that we are working with you to provide the best solutions to protect you from your creditors and eliminate your debt. Contact us today to learn more about what option is right for you.
