What are the alternatives to Bankruptcy?
Written by Emil Fleysher | January 20, 2011 | Bankruptcy
Your right to file for bankruptcy and discharge your debts is a very important and very powerful right. It can only be used once every 8 years and should not be exercised unless absolutely necessary. The general rule of thumb for deciding whether you should file for bankruptcy is this… if your unsecured debts are equal or greater than your annual salary, you should file for bankruptcy. This general rule is based on the fact that if your debts are greater than your annual salary, you will probably never get out of that debt in any reasonable time frame or at a reasonable expense. Paying minimum monthly payments will take many years and you will end up paying much more over time than the original debt amount. However, if your debts are less than this threshold amount, you may want to consider other alternatives.
If your debts are less than your annual salary but still too high to pay, my office can help negotiate a debt settlement. Bankruptcy attorneys generally enjoy a greater degree of leverage in dealing with collection companies and creditors because they know that they can either accept the terms and amount that my client is willing to pay, or they can get nothing if my client decides to file for bankruptcy. Historically, my firm has been able to negotiate a 40% – 80% reduction in the debt and payment terms of up to 6 months. If you have more questions about bankruptcy and its alternatives please call 954-484-9987, send an e-mail to firstname.lastname@example.org, or complete the contact form below…