October 20, 2011
Alternatives To Bankruptcy
Anyone who has had a call from a debt collection agency knows that this can be a very confusing and frustrating experience. Part of the collection agency’s strategy is to deliberately overwhelm you with legal terms and threats, so that you’ll just give in to their demands without considering what is really best for your overall situation. Their aim is to get you upset so you’ll be more pliable. Plus the normal response when you receive a mail notification from a collection agency is to immediately hit the panic button. So what can you do to get out of this uncomfortable situation, without making decisions or agreements that you later regret?
As an attorney, I have helped many people successfully file for bankruptcy and wipe out their debt. Plus once you file bankruptcy, the collection calls and threats will stop. But are there alternatives to filing bankruptcy? Yes – the main alternative to filing bankruptcy is credit negotiations and/or debt settlement. This can be a minefield if you don’t know what you’re doing. So, if you decide you’d like an alternative to bankruptcy, I offer a credit negotiation service that may be right for you.
Many consumers are unaware of their risks with unpaid debts. Yes, it’s true that a creditor could sue you in court and win a judgment, allowing the creditor to garnish your wages or hire a sheriff to come get your property. However, the chances of this happening are not as great as you would think.
It’s true that collection agencies are turning to lawsuits more and more these days, but once you make the creditor aware that you know the law and have an attorney on your side, they are more likely to leave you alone. With savvy consumers, many debt collectors think it is simply too much trouble and expense for them to take legal action against a debt. They look at the cost of filing a suit versus the amount that they are likely to recover.
Many consumers feel that their debts are overwhelming and there is nothing they can do other than file a bankruptcy. They believe those awful tales spun by collection agencies of impending doom, especially about garnishment and seizure of property. Collection agents fail to mention (surprise!) that in order for these actions to take place, the creditor must first go to court. Due to lack of information, many consumers get panicky and assume that bankruptcy is their only option.
So if you have debts that are out of control or are being harassed by a collection agency and don’t know what to do. Please contact my office for a free 30 minute telephone consultation where we can go over you options and you can decide if credit negotiation might be the best option for you.
LA Family Law 