Resolving burdensome debt can be treated by some law firms as a “cookie-cutter” process whereby every client is crammed into a bankruptcy mold. Although bankruptcy may be a great solution for some, it does not work well for everyone. We believe you should be aware of all options and with the help of a good legal adviser choose the best option to solve the problem.
Most people who turn to bankruptcy to remedy their financial problems use it as a last resort. At the Equal Justice Law Group, we understand what you’re going through. We take on a variety of bankruptcy law cases for Sacramento, Jackson, and Placerville, California residents. Call us now to set up a consultation.
We’ll spend at least an hour exploring your financial issues and coming up with the best solutions. We can:
Determine if Chapter 7 or Chapter 13 Bankruptcy is right for your situation
Pull up your credit score and offer solutions to get it back on track
Stabilize your finances and help you start building a savings account
Our financial solutions don’t always involve filing for bankruptcy. We can set you up with a financial advisor to guide your financial decisions. Get in touch with our bankruptcy attorneys today for financial help in Sacramento, Jackson, or Placerville, California.
In some cases, creditors cannot do anything legally to actually collect a debt. There may be many reasons why. In some cases, the debt may be too old and is no longer legally enforceable. In other situations, the debt may be valid, but you may be “judgment proof.” Judgment proof is a common term used by attorneys to describe someone who has no resources from which a debt can be collected, and there is little or no likelihood that those circumstances will change. For example, a person may have not assets that can be legally sold to pay the debt, and there is no income that can be garnished to pay the debt. Communication of these facts from an attorney to a creditor can often result in the debt being “charged off.”
Offer In Compromise
Similar to an Offer In Compromise, a creditor may agree to alternative payment terms when a debt has fallen into default status and may be challenging or expensive to collect. In some cases, upon successful completion of an agreed-upon payment plan, a creditor may agree to charge off some portion of the balance or waive some part or all of the interest charges accrued. Many factors are used by creditors to determine if this alternative is in their best interests. If a debtor is trying to negotiate an alternative payment plan with several creditors it can, of course, be more difficult because some creditors may offer more flexibility than others. In general, all creditors will need to cooperate for a plan to work.
A forbearance arises when a creditor agrees to defer all or some part of debt repayment to a future time. In some cases, interest accumulation can be waived.