• Bankruptcy Solutions
• Foreclosure Solutions
• Modification & Negotiation
• Credit Card Debt Relief

While filing for bankruptcy protection is often an option chosen by debtors in resolving serious financial problems, there are also non-bankruptcy options that may provide an alternative to a bankruptcy filing. Some of these options involve out of court debt negotiations, leading to  potential settlements or loan modifications with creditors. Other options entail litigation defense by answering the creditor’s complaint (within 20 or 30 days) and defending against a creditor’s pursuit of debt by either challenging the legitimacy of the debt or the methods by which the creditor has attempted to pursue the debt.

In some situations, non-bankruptcy options are available and preferable. However, a bankruptcy filing is often the most direct and powerful tool for a debtor to deal with serious financial problems. Nonetheless, it must be stressed that bankruptcy is not the solution for every problematic financial situation, and that in some cases, bankruptcy entails certain risks.

If your debts are primarily unsecured debts, like credit cards, negotiations with your credit cards, especially by a firm like ours that can otherwise file a bankruptcy case can be effective in lowering the debt.  Lump sum agreements give more of a discount than payment plans, but both can yield positive results. We can also litigate with unsecured creditors, especially when there is a potential dispute, or where we need additional time or leverage to reach a  positive settlement.

Bankruptcy usually provides more certainty and immediacy in terms of a resolution of debt. However, negotiated agreements or litigation defense may be preferable when the client does not have a general debt problem, but only has issues one or two isolated creditors, or where a client may not qualify for bankruptcy (due to income or asset limitations in Chapter 7 or due to debt limitations in Chapter 13, as explained further below). Also, some clients may prefer to try to avoid bankruptcy, and negotiation options, even if not as effective as bankruptcy, can provide enough relief in their situations without the need for a bankruptcy filing. Our office generally negotiates most debts on behalf of our clients including credit card, tax, mortgage, business and medical debts, as well as many other types of debts.

Please call us at (631) 271-3737, or e-mail us at weiss@ny-bankruptcy.com for a free consultation to discuss such legal options in greater detail.