Alternatives to Bankruptcy in Rochester NY
New York Bankruptcy Lawyer Robert A. Schwartz
Deciding to file for bankruptcy will likely be one of the most important financial decisions you'll ever make. It is normal to be hesitant about your choice and to want to know what other alternatives you have.
Like several of my Rochester, New York, clients who I have helped throughout the last 31 years of practicing bankruptcy law, you are likely concerned about losing your home and your other valuable possessions. Unfortunately, there are a lot of misconceptions about bankruptcy that are often interpreted as truth.
I can assist you in understanding what alternatives to bankruptcy are available to you, like:
Paying your bills — This might seem like a no-brainer, but paying the debt you owe to your credit card companies, bank and loan companies is really one of the only guaranteed ways to reduce and eliminate your debt without legal action. Usually, however, this option is not possible for those who are struggling with unmanageable debt.
Working with a debt relief company — While this may seem like a promising alternative to filing for bankruptcy, it is also a risky one. Regrettably, there are a many debt relief companies that will claim to help you pay your creditors at a portion of the amount you owe — for a price. Often, people in debt who hire debt relief companies end up in more debt than they would have originally if they would have filed for bankruptcy. Why? Fees, monthly service charges and non-refundable deposits add up fast, and they are usually required to be paid up-front before the company even starts to help you pay off your debt.
If you are considering working with a debt relief company, I can help you identify which are more reliable than others.
Debt settlement — If you are able to free up some funds, working out a lump-sum debt settlement with your creditors to pay them back at a discounted amount may be an option for you. The downside to lump-sum debt settlement is that usually your credit card and other loan companies won't consider lump-sum debt settlement until you owe them a substantial amount, making it less likely that you will be able to pay back your debt, even at a discounted price. Additionally, you may have income tax consequences. Unlike bankruptcy, debt settlement is taxable, meaning you will have to pay taxes on the unpaid portion of your loans even if they have been discharged by your creditors.
Helping You Find the Best Debt Relief Option
I invite you to call my law office and set up a free bankruptcy consultation with me to discuss the best legal plan of action to get you out of debt. We can discuss how the above alternatives will affect your situation, and how filing for Chapter 7 or Chapter 13 bankruptcy may put you in the most advantageous position to eliminate debt and get a fresh financial start.
Contact Robert A. Schwartz Today
Are you interested in learning about alternatives to bankruptcy? Contact New York debt relief attorney Robert A. Schwartz today at (585) 351-2929, or contact him online. The law office of New York lawyer Robert A. Schwartz is located in Rochester, New York. Business hours are 9 a.m. to 5 p.m. Monday through Friday.