Debt relief involves a lot more than just being able to file a Chapter 7 bankruptcy. Bankruptcy is just one of the available options and oftentimes not the best option. Obligations can be settled via negotiations with or without an underlying lawsuit, or they can be litigated.
Many of our clients are consumers who due to unforeseen circumstances fell behind on their debt obligations (credit card or auto purchase or lease payments for example). Oftentimes a lender is much more likely to negotiate with you if you are represented by counsel. Similarly, many collections efforts stop as soon as the collection agency receives a letter from a law firm.
How can we help you?
We may be able to assist you with negotiating a debt reduction along with a manageable payment plan. Many of our clients are businesses who have been adversely affected by economic cycles and find themselves being sued by their creditors (banks and financial institutions). Perhaps the business’s equipment is collateral for the loan and losing the equipment would mean the cessation or sever interruption of the business’s operations. In such situations we have been able to renegotiate and restructure the debt. On the other hand, the obligation would have to be of a sizeable amount for the involvement of legal counsel to be economically justified.
Many of our clients have contacted us after they discovered that a judgment has already been entered against them. In such cases we have been able to assist with reviewing the court records, reconstructing, and explaining what took place to the surprised clients, and taking the appropriate actions. In some instances that would mean attempting to set aside the default judgment, reopen the case, and relitigate the debt. In other cases that means contacting the judgment creditor and negotiating a workable solution.
How to become financially free
Filing bankruptcy is a serious step which should not be taken lightly. Unfortunately, sometimes it is the best option. In many cases it is also a positive first step towards a new financial start. At the same time starting fresh is not enough, it is also important to understand what led to the bankruptcy and learn from one’s mistakes. These are often a combination of events, many of which are beyond the client’s control, but sometimes they are poor decisions, bad judgment and lack of experience and knowledge of finances. Going through bankruptcy involves financial education as the bankruptcy code mandates that the debtor take two classes:
(a) a pre-filing credit counseling course
(b) a post-filing debtor education course.
While these classes are easy and can be completed online, we advise that the education should not end there. When it comes to future opportunities sometimes an individual with business experience and failure resulting in a bankruptcy is preferable to a person with no business experience whatsoever, as presumably for former has learned from the experience and won’t make the same mistakes again.