Bankruptcy is an option of last resort. But also, what most bankruptcy law firms won’t tell you is that bankruptcy isn’t always the right fit for everyone.
Your debt has gotten away from you. They may have even filed a lawsuit. You feel frustrated because you can pay something toward it, but not what they are asking.
And there is something about the collection calls – when they tell you they are trying to “help you” you, you feel like they are trying to get one over on you.
Going bankrupt may be an option, but it may not be the best decision for you.
My name is Mike Ziegler. So many of the clients we have worked with have felt the same way. My firm is unusual in that we help consumers solve their debt problems both with and without bankruptcy. That’s why I want you to know there are 6 reasons why bankruptcy may be a bad option to solve your debts.
Sometimes, an affordable, professionally negotiated payment plan can be the right option to get your debts under control without affecting a job, your future living plans, or important assets.
We are experienced in helping our clients make the right decision and then follow through to implement that decision for them.
If you want to speak to someone who understands, cares and can help you solve your problem, then book a call with one of our attorneys today.
We can help.
Let me start with the bad news – bankruptcy stays on a credit report for up to 10 years. But keep in mind that a credit report is about a lot more than bankruptcy, and when the bankruptcy process clears your debt, it gives you an opportunity to rebuild instead of being stuck with accounts that have a late balance.
While each credit profile is unique, here is what we generally find:
As with any debt resolution option there than full payment on the balance, debt consolidation can result in credit impairment. Furthermore, there is not an automatic stay in debt consolidation like there is in bankruptcy, so it is possible that litigation could continue or arise during the process. Finally, in some instances, settle debt can result in tax liability, but generally, the reduced balances on the debt, even with added tax liability, is still more beneficial than full payment.
If you have questions about how debt consolidation compares to other debt problem solving alternatives please click to schedule a complimentary consultation with one of our qualified attorneys.