Alternatives to Bankruptcy

Options to Avoid Filing For Chapter 7 Bankruptcy

Filing for bankruptcy is oftentimes thought of as an "option of last resort". Although debt relief through bankruptcy might be available in certain situations, it doesn't necessarily mean that it is the best option. Individuals should carefully consider if any available alternative debt relief options exist that can help avoid filing bankruptcy.

When working with a lawyer experienced in multiple areas of debt relief, you might find solutions that could help avoid filing for bankruptcy all-together.

Alternatives to bankruptcy include the following options:

Debt Negotiations

Attorney assisted debt negotiations could result in a settlement to repay a reduced amount in full satisfaction of the debt. When debts are successfully settled, it could obviate the need to file bankruptcy. When feasible, this can be an attractive alternative to bankruptcy. Our office only offers assistance with negotiations on debts that are already in default, and for situations where the borrower has experienced genuine hardship. Furthermore, for a negotiation to potentially culminate into an actual settlement, the borrower must have access to a reasonable amount of funds to pay back a settlement on the debt.

Lawsuit Defense

Just because you're being sued, it doesn't mean that you actually owe the amount being claimed, or that you owe anything to the Plaintiff bringing the case. You are entitled to fight your case and have your "day in court". The Plaintiff bears the onus of stating their case sufficiently. Through the discovery phase of litigation, the Plaintiff can be compelled to disclose the promissory notes, account statements, application for credit, payment history, and other applicable information pertinent to the case. By analyzing the evidence, your defense attorney can look for weaknesses in the Plaintiff's claim to use for your benefit.

Debt Validation

If your debt is old, or if you don't recognize the banks name or the balance being claimed, you may be concerned about whether you actually owe it. There are laws that allow you to dispute the validity of the debt and to request additional information regarding the account. Of course, you wouldn't want to file for bankruptcy just to discharge a debt that may not be valid.

Our office represents consumers with respect to disputing account information that is not recognized. Upon receiving a demand for validation, a collection agency is required to cease further collection attempts until the account is verified. For some borrowers facing collection on false or erronous debts, this could be a powerful tool to potentially avoid filing for bankruptcy.

Credit Repair

It is important to understand that erroneous and outdated information can sometimes appear on credit reports. Someone looking at their credit report might be alarmed to see a significant amount of debt, and as a result, may feel compelled to file bankruptcy. An attorney experienced in analyzing credit reports can identify whether an account is beyond the applicable statute of limitations for lawsuits, and can also determine when the item will be deleted from the credit report due to age. This analysis can give important insight into the details of the debt, and can help a lawyer make a determination as to whether bankruptcy may be avoided. Furthermore, items that are beyond the legal period for credit reporting can be deleted through a dispute process with the credit bureaus.