{"id":1207,"date":"2019-05-07T04:51:36","date_gmt":"2019-05-07T04:51:36","guid":{"rendered":"https:\/\/recoverylawgroup.com\/?p=1207"},"modified":"2025-08-06T06:49:39","modified_gmt":"2025-08-06T06:49:39","slug":"alternatives-to-bankruptcy-filing","status":"publish","type":"post","link":"https:\/\/recoverylawgroup.com\/staging_D\/alternatives-to-bankruptcy-filing\/","title":{"rendered":"Alternatives to Bankruptcy Filing"},"content":{"rendered":"

Many see bankruptcy as the only solution to handle their crisis of debts. But an experienced\u00a0bank attorney, Los Angeles\u00a0(for those living in California) or an acclaimed law firm such as\u00a0Recovery Law Group<\/a>, who also\u00a0operate\u00a0in states of Nevada and Texas, will be able to easily\u00a0access\u00a0your condition and\u00a0provide\u00a0options to the debts problems of the consumers. Remember that paying off your debts in a regular way is the best way to clear off the dues.<\/p>\n

Let\u2019s explore a few options or alternatives to bankruptcy filing \u2013<\/p>\n

Debt Settlement<\/u><\/strong><\/p>\n

This is a process where negotiation arrangements\u00a0are made\u00a0with the creditor for taking a lump-sum payment that is generally lesser than the full amount due. The debt settlement solution is quite risky as the debtor needs to arrive at\u00a0delinquency\u00a0of debts\u00a0so as to\u00a0obtain\u00a0the significant settlements. There is no assurance that the debts\u00a0can be\u00a0negotiated with the creditor and for how much. In addition, the creditor may even sue you before the negotiation settlement\u00a0arrives\u00a0between you and them.<\/p>\n

The another effect\u00a0of\u00a0debt settlement is that they affect the taxes that\u00a0will be paid. Let\u2019s say that you owe $5000 on your credit card and the debt settlement\u00a0no\u00a0reduces it to $3000, then the remaining $2000 becomes a taxable income to you. This income needs\u00a0to be\u00a0reported in your taxable income and the tax needs\u00a0to be\u00a0paid on this value which may ultimately\u00a0reduce\u00a0your savings.<\/p>\n

It is interesting to know from a 2005 report that Debt Settlements haven\u2019t been a successful ordeal for the consumers. They generally\u00a0encounter\u00a0high-interest\u00a0rates and\u00a0additional\u00a0fees from their creditors and they\u00a0are pestered\u00a0through collection calls further. The report\u00a0is titled\u00a0\u2018An Investigation of Debt Settlement Companies: An Unsettling Business for Consumers\u2019 and\u00a0has been issued\u00a0by National Consumer Law.<\/p>\n

Credit Counselling<\/u><\/strong><\/p>\n

The second alternative Credit\u00a0Counselling\u00a0involves a\u00a0reduction\u00a0in payments that are negotiated with every creditor that the debtor\u00a0is associated\u00a0with. This counselling service\u00a0is indicated\u00a0on the credit report statements by the creditors. The statement on the credit reports can have effects on the credit rating of the debtor for a given situation.<\/p>\n

The Credit Counselling\u00a0is facilitated\u00a0by counselling agencies who may seem to work your benefit but can eventually be working for the credit card issuers. Most counselling agencies are generally funded by the credit card issuers. They may continue to\u00a0indicate\u00a0that it is a\u00a0time-consuming\u00a0process but can eventually prolong your repayment to several years with the credit card issuer \u2013 the agency may only share a probable time of completion. The creditors may also agree to drop the interest rates and agree to the counselling plan but this process isn\u2019t assured.<\/p>\n

As a debtor, verify the effectiveness of the debt settlement or credit counselling agency and validate that they have a license. Also, evaluate if they accept payments from the creditors and if they are assuring a repayment plan, get the term of completion in writing. Getting some professional help in this area is suggested. Recovery Law Group works with their customers in California and Texas states and provide the best attorney, Los Angeles<\/a>\u00a0or Dallas regions to the consumers who need guidance on finding alternatives to a\u00a0bankruptcy\u00a0filing.<\/p>\n\n

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