Alternatives to Bankruptcy in Pennsylvania
Before filing bankruptcy, consider these 3 non-bankruptcy options.
You may feel your only recourse is to file for bankruptcy, but you may have options other than bankruptcy.
Are you dealing with any of these situations?
To explore your options thoroughly before you make a life-changing decision, you need the guidance and assistance of a highly experienced attorney for bankruptcy.
While bankruptcy is an excellent option for some, in some circumstances it may not be your best move. Some consumer defense lawyers may immediately recommend bankruptcy for a client, even when there may be a viable alternative that would have been more beneficial in the long term.
When you work with The Law Offices of David M. Offen, we will evaluate your circumstances and make an honest, thorough evaluation of your financial situation to determine whether an alternative to bankruptcy makes more sense for you.
3 Bankruptcy Alternatives You May Not Know About
1) Stopping Creditor Harassment
Harassment, which includes annoying and threatening phone calls and letters from creditors, debt collection agencies, auto loan companies, and mortgage companies, can be a source of extreme stress. An attorney at our offices can look at your situation to determine whether these creditors are actually breaking the law with their efforts to collect your debt. If so, you may have grounds for legal action. If no laws are currently being broken, we may still be able to help you take action to lessen the constant calls or contact by creditors.
2) Creditor Negotiations
In some cases, our attorneys may be able to negotiate with one or more of your creditors to work out a payment plan or get a settlement that will resolve your debt.
3) Debt Consolidation
Consolidating your debt may be another option if you have a regular source of income. With debt consolidation, you may be able to combine your debt into a monthly payment. If you’ve fallen behind on mortgage payments, a loan modification may be an option to help avoid foreclosure. An attorney may be able to work out better terms for your mortgage loan, lower the interest rate, and may even be able to work out a plan to make up any missed payments.
What are the Disadvantages of Filing for Bankruptcy?
First, the fact that you file bankruptcy can remain on your credit report for up to ten years. However, your attorney will counsel you as to how best to repair your credit and improve your credit score following the bankruptcy.
Will you be able to get a car loan or mortgage after filing bankruptcy? Most likely yes, but you will not be offered the best terms or lowest interest rate in the years immediately following your bankruptcy discharge, because lenders will see you as more of a risk. Again, paying your bills in full and on time will help improve your credit score, as will using credit wisely.
When you receive your bankruptcy discharge, your unsecured debt is cleared, meaning your debt-to-income ratio improves dramatically and this will help your credit score as well.
The Law Offices of David M. Offen Has 20 Years of Helping Clients Get a Fresh Financial Start
At the Law Offices of David M. Offen, our attorneys are experienced in dealing with creditors and negotiating debt settlement. Creditors are often more flexible when they are dealing with an attorney than with the individual who owes them money.
How do I get out of debt without filing bankruptcy? As you’ve read, there are circumstances under which it makes more sense to negotiate with creditors. However, in some cases, after a review of the financial situation, you may opt to file Chapter 13 bankruptcy and reorganize your debt or Chapter 7 to get your unsecured debt discharged.
This information is intended to help you assess your debt situation and determine whether to file bankruptcy or explore other non-bankruptcy options. The Law Offices of David M. Offen will be there to help and assist you in the decision-making process. We will provide useful information that is often badly needed when an individual is trying to deal with his or her debt problems.
Contact a Philadelphia bankruptcy lawyer from the Law Offices of David M. Offen if you are looking for an alternative to bankruptcy. The consultation is free of charge. Let us help you get a fresh start!