What sort of person will benefit by engaging our firm?

We represent people with genuine financial hardship.  This means people who are late on paying their bills and have no prospect of coming into the money needed to pay them.  If you are thinking about bankruptcy, it is worth having your situation analyzed by us.

If you are able to pay your bills or have a reasonable prospect of coming into the money to pay them, then we encourage you to do so.  Our experience is that people honestly wish to resolve their financial problems honorably and without the embarrassment of filing for bankruptcy protection.  Nevertheless it will depend on your specific circumstances. We have represented many people—from laborer to professional, all with strong earnings who simply had too much debt to service, and they have worked out their financial problems with our legal assistance.

How much can you save me?

Every combination of every account, creditor and debtor is different.  We don’t know exactly how much we will be able to save you, but we do know for certain that we can save you some.

Here are a few samples of real help for real people:

• Bank of America debt of $15,398.38 reduced to $7,699.19 =  client’s savings of $7,699.19 (50%)

• Chase debt of $8,686.40 reduced to $6,080.48 = client’s savings of $2,605.92 (30%)

• 2 Chase debts totaling $18,691.00 reduced to $13,000.00 = client’s savings of $5,691.00 (just over 30%)

Should I file for bankruptcy protection?

Generally it is better to avoid filing unless absolutely necessary.  It has lasting impact on credit reporting and most loan applications inquire as to whether you have ever filed.  Attempting to resolve your unsecured debt using us as your lawyers may not work, and it is possible that you might have to file bankruptcy down the road anyway.  Our experience is that we can diminish the chance that such a filing will be necessary.

We have been involved in hundreds of bankruptcy cases and never met a person who wanted to file.  When Congress changed the Bankruptcy Law in 2005 to make it harder on debtors who needed to file, we began having people work through the process you are reading about rather than filing for protection.

Credit Scoring

If you are still paying your bills (making minimums on credit cards for instance) your credit score will be adversely affected by using our firm’s representation—just like it can with any company that helps you reorganize and pay off your debt.  The Fair Isaacs credit scoring system is complex, and primarily measures how you have paid your bills in the recent past.

We often find that credit scores have been damaged before clients come to us. Over time, as accounts are resolved in or out of court, your score should improve.  Bear in mind that it will take several years no matter how accounts are resolved.

Bankruptcy is a drastic remedy.  If things have gone terribly wrong, it can be the only alternative and it can be a very effective one.  It is always available, and we can let you know if we believe it appropriate for your circumstances.

Can I still use my credit cards?

The object of hiring us is to work through all unsecured claims and to get back to living on cash.  We will advise you to stop using credit cards entirely.  In fact, credit card companies reduce and terminate credit for good reasons, bad reasons, and no reason at all.  Unless one is wealthy, credit cards represent a bad deal.

Lawsuits

Credit card companies, or the companies to which they sell the debt to, will file lawsuits eventually.  This is part of the normal legal process. Our firm can defend these suits and we are very experienced in doing so. We will charge additional fees for litigation, but these fees often result in favorable results, either by successfully challenging suits which cannot be proven or by negotiation and settlement of valid claims.

Creditor calls

Once creditors know that you are represented by an attorney, they can only contact you through counsel.  If they continue to contact you, we can file suit and compel them to stop.

Some of my lenders are saying they are going to take my house or even put me in jail! Can they do that?

If you own property, are married, and the credit card debt is only in your name, then they cannot take your house.  And they certainly cannot put you in jail over credit card debt.

Can’t I negotiate my debts with my creditors on my own?

YES, you can negotiate your debts with your creditors on your own.

You should note however, that the debt negotiation process can be long and complex for the average consumer.  Our debt negotiators have the skills and knowledge of how your creditors negotiate and they have many years of experience negotiating very largest debt reductions.  You don’t have to spend all of your time and effort trying to negotiate with your creditors and you can rely on our experience to get the best debt reduction possible for you.

What are the tax consequences?

Your creditors will report cancelled/settled debts exceeding $600 to the IRS and you are required to report the same as income on your annual tax return.  However, the IRS permits you to write off any “income” from canceled debts up to the amount by which you were “insolvent” at the time.  You need to consult your own tax advisor for advice that is specific to your situation.

This is a hard decision, is there any harm in waiting a few more months?

Your credit will not be the better for it, but we want you to be sure you are committed to success before signing up with us.