Due to the relatively recent economic recession, many people have found themselves buried under the burden of debt. Countless individuals have gotten a Sacramento bankruptcy attorney to help out in these situations, but what many people fail to realize is that these legal professionals can provide advice on alternatives to bankruptcy. While filing for Chapter 13 or Chapter 7 bankruptcy discharge may be the best possible action, the right legal professional can provide advice on whether this is the case or not. In some cases, however, they can help out with bankruptcy alternatives.
Debt Negotiation to avoid Bankruptcy
Maybe one of the best ways that a bankruptcy lawyer can help out is by dealing with a person’s creditors and negotiating repayment plans. In most situations, a creditor will be much happier to set up a payment plan that to potentially lose their investment in a bankruptcy case. In fact, many creditors will offer to reduce a person’s debt just so they recover a certain percentage of it. In the end, this can help an individual avoid bankruptcy without financially ruining them.
Avoiding Bankruptcy with Debt Consolidation
One of the most disheartening factors of being in deep debt is paying off numerous creditors each and every month. Sadly, when this is combined with high interest rates, the stress of handling numerous payments quickly combines with the inability to catch up due to interest rates which keep debt growing.
Fortunately, a bankruptcy attorney may be able to point an individual towards a consolidation solution. By consolidating numerous debts, such as by taking out a single loan that’s large enough to immediately pay off several other loans, a person can simplify their monthly payments to just one creditor while hopefully reducing the interest they pay back every month.
Avoid Bankruptcy by simply Avoiding Bankruptcy
There’s something that bankruptcy lawyers call “judgment proof”. This is when a person is in a situation where it doesn’t really make sense for creditors to go after them in court. After all, even if they win a judgment, they can’t really collect anything if a debtor has nothing for them to collect. A person without an income, for instance, couldn’t face wage garnishment.
In some instances, simply doing nothing is a valid alternative to bankruptcy, and since most debts roll off after seven years, a person’s credit report will eventually look better. It’s still imperative, though, to speak with an attorney before doing this. If a person incorrectly thinks that they’re judgment proof, they could be in for an unwelcome surprise.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791
916-446-1791.