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Alternatives to Bankruptcy

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Alternatives to Bankruptcy in Fresno

Are you finding yourself feeling crushed under the weight of debt and financial obligations? Many individuals and businesses consider filing for bankruptcy as a way out of these difficult circumstances. The attorneys at Arnold Law Group, APC, have deep experience with this process, but before moving forward, people need to know that there are several alternatives to bankruptcy in Fresno that can help you regain control of your finances. We can provide you with information about the available options that you may have.

Call Arnold Law Group, APC, at (559) 900-1263 or reach out here online and schedule a free case evaluation.

What Are My Alternatives to Bankruptcy?

Every case is different, but some of the options our attorneys help clients look at include the following: 

Debt Settlement

Debt settlement is a negotiation process where individuals work with their creditors to reduce the amount of debt owed. The goal is to reach a settlement agreement where the debtor pays a lump sum or a reduced amount to satisfy the debt. 

This alternative can be effective in reducing the total debt burden and providing some relief to individuals struggling to make monthly payments. 

Creditors may be persuaded that their best interests lie in getting some of their past due money in the short term rather than waiting for the bankruptcy process to be completed. A Chapter 7 bankruptcy filing will likely take several months, and Chapter 13 bankruptcy proceedings can stretch out for 3-to-5 years. 

Debt Management

Debt management involves working with a credit counseling agency to develop a repayment plan that suits the individual's financial situation. The agency negotiates with creditors to lower interest rates, eliminate late fees, and create a manageable payment schedule. Please be aware, however, that credit counselors are not lawyers and may not know all the nuances and detail that is involved in the bankruptcy process. 

A debt management plan provides structure and guidance, helping individuals pay off their debts over time while avoiding bankruptcy.

Debt Consolidation 

Debt consolidation is another alternative to consider. It involves combining multiple debts into a single loan, typically with a lower interest rate and extended repayment terms. By consolidating debts, individuals can simplify their payments and potentially save money on interest charges. This option may be used in cases like the following: 

  • Credit Card Modification: In some cases, you can modify your credit card's interest rate or principal balance. Modification is accomplished through negotiation. Our firm can handle the negotiations to help you pay less on your account balance.
  • Home Loan Modifications: If you are faced with foreclosure proceedings, you may be able to modify your mortgage payments. Home loan modification is a negotiation process in which the terms of a mortgage are modified from the original terms of the contract that were agreed upon by the lender and borrower.

Selling Assets

Selling non-essential assets like a second car, jewelry, or other valuable possessions can generate funds to pay down debts. While this option may not completely eliminate all debts, it can significantly reduce the overall burden and provide individuals with a fresh start.

We know that protecting one’s home is one of the biggest concerns people have when dealing with debt. There are certain cases, however, when you may want to consider a voluntary house repossession if you are unable to afford your mortgage payments. You might also choose a short sale of your residence. This is when you sell your property for less than the amount due on the mortgage and the lender agrees to accept that amount as a satisfaction of the debt. 

Before taking any such action, be sure to talk to one of the qualified attorneys from our office. If selling property ends up being the best approach, we can help provide you with a certified Realtor.

It is important to note that each alternative to bankruptcy has its pros and cons, and the best approach will depend on an individual's specific financial situation. We’ll help you understand the potential impact of each decision on credit scores, tax consequences, and long-term financial goals. 

Experienced Legal Help From Arnold Law Group, APC 

We can provide you with knowledgeable legal counsel on each of the available forms of debt relief. We want you to be fully prepared before you choose a relief option so that you can have confidence in the outcome.

With more than 30 years of combined experience, our bankruptcy lawyers have the resources and proven ability that you need. You can trust the legal guidance we provide through each step of your case, beginning with the decision-making process. 

You can contact Arnold Law Group, APC, by calling (559) 900-1263 to schedule your free case evaluation.

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