Options And Alternatives to Filing for Bankruptcy
For some debtors, bankruptcy is not the best option. Many times this is because they cannot qualify for Chapter 7 due to their income, they qualify for a Chapter 7 but would have assets liquidated under that Chapter, or they qualify for Chapter 13 but do not want to be monitored by the court or repaying their creditors for the next 3 or 5 years.
In these situations, we offer debt settlement services to our clients. We do not offer debt consolidation or debt management services where we manage all of a client’s unsecured creditor accounts and make small payments to all creditors over time. Spaulding Law Group is a consumer bankruptcy law firm and a debt relief agency, not a debt consolidation or debt management company. Debt settlement involves reaching settlements with any creditor the client so instructs and settling such accounts one at a time via lump sum settlement payment. We require that our clients who want to pursue debt settlement have cash on hand to pay lump sum settlements to any creditor with whom they wish to settle for less.
Our attorneys have settled hundreds of thousands of dollars of both unsecured and secured debt on behalf of clients. While we cannot guaranty any result on any particular debt; we have, in the past, been able to settle the majority of accounts for 25% to 40% (these percentages include attorneys fees) of the total amount due on the account at the time of settlement.
- If you would like to speak with an attorney about debt settlement, please contact Spaulding Law Group at (714) 731-7595
There are additional considerations with respect to debt settlement that can become quite complex such as cancellation of indebtedness income (1099-C Income). Prior to embarking on settlement with any of a client’s creditors, we make certain that the client understands potential tax implications by speaking with their CPA or tax professional.
Beware of private debt consolidation or debt management companies if you are trying to avoid filing bankruptcy! They will gauge you on fees and are rarely able to arrange an agreement with your creditors that prevents lawsuits. Most debt consolidation companies are not law firms and therefore, do not employ licensed attorneys. They can leave you defenseless if a creditor decides to sue you and cannot protect you most times from creditor lawsuits in State court.
If you would like more information on debt settlement, contact Spaulding Law Group at (714) 731-7595 and take advantage of a free telephone assessment or free in person consultation with an attorney today.