Can I Do Debt Settlement to Avoid Bankruptcy

You have probably heard a lot about President Obama's financial measures to help distressed homeowners.  But what if your home is not the problem?  What if you simply lost your job and cannot make the payments on your current debt?  Well, unfortunately there has not been a lot of new ligislation to help you with settlement of debt with your current creditors.  Traditionally, settlement of debts with credit card companies and other creditors has been called Debt Settlement Plans. 

Debt Settlement Plans are VOLUNTARY.  None of your creditors have to agree to be bound by the plans.  In fact, creditors like American Express will not participate in any Debt Settlement Plan.  Therefore, it is important to know the key points favoring your creditors to settle.  Hiring someone who deals in Debt Settlement Plans on a regular basis is a good idea.  Hiring an experienced bankruptcy lawyer to negotiate the debt for you is an even better idea.  Places like www.wantafreshstart.com and www.bankruptcyattorney-lasvegas.com and www.debtfreebankruptcy.com are good places to start.  If your plan is being submitted by a large volume bankruptcy firm, the creditor will understand that if they do not accept the Debt Settlement Plan they will likely be faced with recovery of nothing in a bankruptcy.  This can help with the negotiation.

In the same way that no creditor can be forced to participate in a Debt Settlement Plan, even if you get the creditos to go along with the plan, you will still have to repay a significant portion of your debt.  This option is good for people who are concerned with "doing the right thing" and repaying a majority of their debt.  However, if your objective is to get out of debt so you can provide for your family and the things that really matter in life, bankruptcy may be your best alternative. 

To determine whether bankruptcy or Debt Settlement is right for you, contact us.