Ron Lundquist: Bankruptcy Alternatives
Many people who have outstanding debts face foreclosure, bank levies, wage garnishments, or an intercept of income tax. If you are in this situation, even simple creditor harassment can add daily stress as you try to figure out a solution. You may have sought a loan from the bank, private institutions, or your family and friends. You may have also tried negotiating with debt collection agencies without luck.
After exhausting yourself over various attempts to dig yourself out of debt, bankruptcy can seem like the only way to find a fresh start. But there may be a few options you haven’t considered.
Before you start the bankruptcy process, it’s worth your time to analyze whether or not the following two processes might be feasible alternatives to bankruptcy:
- – Instead of representing yourself, you can use a debt consolidation agency to contact creditors seeking lower interest rates and lower payments. Having an agency behind you often convinces unwilling creditors to participate. However, this will negatively affect your credit since you are not paying creditors pursuant to your contractual agreement. It can also be expensive and complex. Some debt settlement agencies demand that they get paid first. And since debt settlement relies on voluntary participation by all creditors, one creditor who doesn’t allow a lower rate or payment can make debt consolidation impossible.
- – Approach creditors one at a time and negotiate lump sum settlements. This can be difficult since you must give creditors a reason to want to settle, such as your intention to file bankruptcy if no settlement can be reached. Creditors may then accept a lower payment to “forgive” your debt instead of getting nothing should you file for bankruptcy. Typically, creditors will want detailed information on income, expenses, assets, and other debt to decide if they will settle. Debt settlement can also prove difficult because it requires a source of money to pay a creditor right away. Learn more about the debt settlement process.
You are NOT required to try the above processes before turning to Chapter 7 bankruptcy or Chapter 13 bankruptcy. Most people don’t, whether because they require money up front, take too much time, or cause additional stress in an already stressful situation.
Bankruptcy, on the other hand, puts you in control of regaining a financial footing and can reduce stress. It doesn’t require you to have direct contact with creditors or deal with ongoing creditor harassment. Through bankruptcy, an accredited and experienced lawyer takes the reigns on your behalf, fighting for your fresh start.
In bankruptcy, creditors have to “play by the rules” and cooperate, whether they like it or not. Bankruptcy is the great equalizer, giving you a shield against the institutions who have been controlling your life and sapping your income. Creditors will be ordered to stand down, giving you peace from constant calls and debt reminders in the mail. Through bankruptcy, your debt can almost always be forgiven without giving up your house, assets, or a lump sum of your hard-earned money.
I, Ron Lundquist, am recognized as a debt relief agency, and provide bankruptcy relief using the laws of the State of Minnesota and the United States Bankruptcy Code. While I do not offer debt consolidation or debt settlement services, I can advise you whether or not there may be feasible options in your specific situation.
If not, I can represent your bankruptcy case from start to finish with almost 20 years of experience in bankruptcy law. Together we can get you back in charge of your finances. Call me at 651-454-0007 to schedule an initial consultation.