Are you looking for alternatives to bankruptcy? Did you know there are other ways to manage your debt? In fact, bankruptcy might not be the best solution. You have options! Have you ever heard the expression, “When you have a hammer, everything looks like a nail?” For many people, bankruptcy often seems like the only option available when debts start to pile up but fortunately, that isn’t true. At Ziegler Diamond Law: Debt Fighters, we pride ourselves on not just being “bankruptcy attorneys.” Rather, we consider a variety of legal options to solve debt problems because bankruptcy isn’t always the best solution.
Depending on your circumstance, you might be able to:
- Negotiate your debt so you end up paying just pennies on each dollar owed
- Defend a lawsuit from the debt collector postponing or eliminating your need to pay
- Sue the debt collector for collection harassment or other legal violations effectively turning the tables and having the debt collectors owing you
To determine if alternatives to bankruptcy are right for you, contact Ziegler Diamond Law: Debt Fighters today. Simply fill out the form to the right or call (727) 538-4188. Since we practice multiple disciplines, we can help you find a legal solution that fits your situation.
Alternatives to Bankruptcy as the Best Solution
A bankruptcy attorney clearwater fl is the best solution, hiring a lawyer is imperative.
Your creditors will have legal representation because they understand how complicated the process is. They also know it is easy to make mistakes; in fact, your creditors are banking on the fact that you could make costly mistakes that lead to your case’s demise.
Without legal representation, it is easy to make a simple procedural error that leads to a dismissal of the case. That is totally understandable since the average consumer doesn’t have the required bankruptcy knowledge to handle things themselves. Additionally, you probably don’t have the time to prepare the case yourself. If you do choose to proceed on your own, you’re likely to pay thousands of dollars more than you need to.
If you are considering bankruptcy, take a look at the following case studies. These are examples of our tailored debt management solutions. While we emphasize that the resolutions reached in these examples do not guarantee future results, it is important to note the bankruptcy alternatives available.
Case Study 1: Dramatic Result in Debt Negotiation through Creditor Error
A debt collector sued Client for $27,000. The debt collector was a third party who allegedly acquired the debt from the original creditor. We were retained to litigate the case. In the course of litigation we found a weakness in the creditor’s case, which potentially could have resulted in a dismissal of the lawsuit. We used the weakness to negotiate a substantially reduced settlement of $501 to resolve the balance in full.
Result: $27,000 debt settled for $501.
When a creditor attempts to collect a debt through the Court system, they are bound by the Court system’s rules. If the debt collector does not follow the Court system’s rules, the oversight can result in substantial penalties to the debt collector – and in some cases, they can lose the ability to collect the balance all together.
A consumer should retain an attorney familiar with debt collection law who can identify possible mistakes made by debt collectors in the litigation process and use those mistakes to negotiate a favorable result.
Case Study 2: Bankruptcy avoided through Debt Litigation and Negotiation
Client had only one problematic debt that was in default and a lawsuit was filed against him. The debt was over $30,000. Client was retired, had limited income, and could not afford to pay the total balance owed. However, Client had some resources in protected retirement accounts that could be used for a reasonable settlement, if necessary.
When a consumer only has one or two problem debts, I generally recommend trying to avoid bankruptcy. While bankruptcy may be an appropriate solution in some cases, it does come with a cost – including credit impairment. However, if a lender is unwilling to negotiate a reasonable settlement – even on just one loan – bankruptcy may be the only reasonable option.
In this case, I recommended that we first try to negotiate down the balance of the loan to an affordable amount, and if unsuccessful, then we would use bankruptcy as a fall back option.
We began negotiating on the balance of the loan before defending the lawsuit. The creditor initially offered $16,500.00. After a negotiation process, the creditor came down to $10,300. This was still beyond my client’s affordability.
We then began litigating the lawsuit by filing a motion to dismiss and discovery to evaluate weaknesses in the lender’s case. The lender responded to our motion and our discovery, and based on the response, we felt that the lender had a probability of winning the lawsuit. I explained to the lender’s counsel that I was recommending my client file bankruptcy unless we could reach a reasonable settlement. After further discussion, the lender reduced their settlement to $8,500. This was within my client’s affordability and we accepted.
Result: $30,000 debt settled for $8,500.
Debt Collectors are routinely told that the consumer is going to file bankruptcy. Playing the “bankruptcy card” only helps negotiating debt if the threat is credible. In this case, we were able to use the bankruptcy threat credibly because 1) the threat was coming from an attorney who files bankruptcy, and 2) we have exhausted all other alternatives. This created leverage to reduce the lender’s settlement position by almost $2,000.
Case Study 3: Bankruptcy appropriate for one unmanageable debt
In contrast to Case Study 2, here we also had one problematic debt, but the debt was over $100,000 (resulting from a litigation issue). The Client had about $15,000 per year in income, and no assets that could assist in negotiation. In this case, negotiation would have been futile given the starting point of the debt and the limited resources available to negotiate. Bankruptcy was pursued and the debt was discharged.
Consider the Bankruptcy Alternatives
Before hastily proceeding to bankruptcy, it is important to consider your options. Working with a Clearwater debt attorney— like those at Ziegler Diamond Law: Debt Fighters —can oftentimes produce debt management solutions that have a minimal amount of risk, cost, and credit impact.
If you are interested in learning more about bankruptcy alternatives, fill out the form to the right. We’ll schedule a consultation to review your situation and suggest a tailored debt management solution that is just right for your circumstances.
What’s Holding You Back?
If you’re in the midst of financial distress, it probably seems counterintuitive to spend even more money. You might realize that it is advantageous to have someone looking out for your interests and understands your legal options, but your finances are stretched thin as it is.
Fortunately, Ziegler Diamond Law: Debt Fighters can help. We provide affordable services and are determined to help lead you back to financial stability.
A $125 Gift, Free for the Taking!
We encourage you to sign up for a free Financial Recovery Strategy Session. Valued at $125, this free half hour session will allow us to review your current situation, assess the risks you face (wage garnishment, seized property, etc.), and help you devise a plan to move forward.
Fill out the form to the right or call (727) 538-4188 to schedule your free consultation. This no-risk, no-obligation meeting is the first step toward an effective debt resolution.
Your creditors will have legal representation. Will you? Take the necessary steps to protect your legal rights, your property, and your financial credibility by contacting Ziegler Diamond Law: Debt Fighters today.
Call Now for a Free Case Evaluation
Clearwater: (727) 538-4188 | Tampa: (813) 225-3111