What Are the Alternatives to Bankruptcy in California?

When you are struggling under the weight of crushing debt, it is smart to consider every possible option to get control over your finances. You have already tried to stay current by making minimum payments, but you were unable to make a dent in the balance after paying interest and fees. There may come a point that you need to look at legal remedies, and bankruptcy is a solution. However, many debtors in your position will also want to know about the alternatives to bankruptcy in California.

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How Long Does It Take To Get a Discharge in Michigan?

Debt can get out of hand before you realize it, leaving you struggling to pay bills and fearing legal action from creditors. Despite efforts to make payments and cutting your budget, you may be unable to stay on top of your finances. Unfortunately, the more you fall behind, the more the fees add up. You may have already considered some options for getting out of debt without court, but these are not always the best fit for your situation. Bankruptcy in Michigan may be a wise solution, since it eliminates qualifying debt. One of the first questions for many filers is timing and how long it takes to get a discharge in Detroit.

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What Debts Can I File Bankruptcy on in California?

For those facing an uphill battle with trying to get control over debt, every day is a source of stress. Not only are creditors calling with threats, but you are watching your debt grow through late fees and interest. There may come a point where you consider bankruptcy in California, and the process is an effective way to get a fresh start with your finances. However, one critical factor to understand is what debts you can file bankruptcy on in CA. You may be surprised to learn what you can and cannot discharge.

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Overview on Debt Settlement

There is no question that the emotional and psychological effects of debt can be devastating and impact numerous aspects of a debtor’s life. Debt can affect your ability to have a nice dinner with friends to your ability to go on a much needed vacation or pay for everyday living expenses. Having too much debt can take the joy out of living.

Given the economic downturn that has impacted millions of Americans and homeowners, especially in the sunshine states such as California, Nevada, Arizona and Florida, it’s not surprising that so many debtors are considering their bankruptcy options or their alternatives to bankruptcy. One such alternative to the traditional bankruptcy is called “debt settlement.”

One of the greatest things about the financial industry is that virtually everything is negotiable. Even if you think an interest rate or a price is set in stone, sometimes getting a discount or a reduction in fees comes down to knowing when and who to ask for it.

Debt settlement is the process of offering a large, one-time payment towards an existing debt in exchange for the forgiveness of the remaining balance. For example, if you owe $30,000 on a hospital bill and we approach the hospital and offer a one-time payment of $20,000. In return for this one-time payment, the hospital agrees to forgive the remaining $10,000.

Why would a hospital be willing to accept a $10,000 loss? Hospitals frequently provide medical services that they are never paid for, especially when the patients are uninsured or cannot afford to pay their bill. The hospital is trying to protect their bottom line, which is a key fact to remember during negotiations. Since creditors such as hospitals or credit card companies represent unsecured loans, there is no “collateral” for them to seize in order to help repay an unpaid balance.

Getting a creditor to accept a settlement on a balance may seem too good to be true, but it’s possible. Lenders don’t generally like to advertise settlement, but if you’re quickly falling behind on your payments and heading towards bankruptcy, your lender may be willing to take whatever they can get, giving you one last opportunity to get back on your feet.

If you are considering debt settlement as an alternative to bankruptcy, it’s important to discuss this option with a qualified professional from Kostopoulos Bankruptcy Law. Not only are there specific procedures that encourage a successful debt settlement, if handled improperly, the creditor may accept a payment yet continue to collect on the remaining debt, which would defeat the purpose of debt settlement.

Contact us today to discuss debt settlement as well as all other viable debt relief options that can put you on the track to a financial fresh start!