The attorneys at John W. Lee, P.C. will recommend other alternatives to bankruptcy if appropriate. Not everybody should, or needs to, file a bankruptcy. If you are in a position to negotiate or settle some of your debts without filing bankruptcy, we can help you with that as well.
If you have only one or two large debts, then sometimes it is better to try to negotiate a settlement with your creditors. This negotiation will ultimately give you more time to work on improving your financial picture and help put a stop to aggressive collection calls.
We will contact your creditors and attempt to have them agree to a payment plan for less than you owe, normally for about fifty cents on the dollar. Once you settle a debt with a creditor, they will report that fact to the credit agencies. Another thing to keep in mind, unlike bankruptcy, there are tax consequences to settling a debt for less than the full balance.
If you only have a one or two creditors, and one of them has filed suit against your, then you should simply consider retaining our attorneys to defend you in court rather than file bankruptcy. In many cases an account has been sold, has grown too old, or the creditor is not prepared to put on evidence and we can arrange to have the case against you dismissed.
For more information on Avoiding Bankruptcy, please visit FTC Consumer Information