If you are struggling to pay the bills, like many Americans, you may be considering filing for bankruptcy. The coronavirus pandemic has hurt millions of Americans financially. Many people think that bankruptcy is their only option, but there are several different alternatives to bankruptcy out there. In some cases, taking a non-bankruptcy option could be the best solution to your financial difficulties. The experienced lawyers at Bankruptcy Law Center can help you determine your best course of action. 

Negotiate With Your Creditors

It is always possible to negotiate with the creditors who are harassing you. If you can sell some of your assets and offer your creditors a lump sum payment that is lower than what you owe, they may accept your offer. Negotiating with creditors will also provide you with some extra time to consider filing for bankruptcy. It is always wise to speak to a lawyer first. At Bankruptcy Law Center, we can help you make sure that your agreement is in writing and that your creditors follow through with their end of the agreement. 

Discuss Your Case with a Credit Counseling Agency

Sometimes people seek help from credit counseling agencies. These agencies can negotiate with your creditors for you. If you do decide to file for Chapter 13 or Chapter 7 Bankruptcy, you will need to take a Credit Counseling Briefing from a counseling agency that is certified before you submit your application. 

Federal law requires this type of counseling with almost no exceptions. If you do not undergo this counseling, your case will be dismissed. Our law firm can recommend certified counseling providers for you. Even if you are not convinced you need to file for bankruptcy, the counseling service session can still help. 

Debt Settlement

If your debt is extremely delinquent, you may be able to engage in debt settlement. In debt management plans, you will need to pay off your entire debt over time. However, during the debt settlement, a portion of your debt will be forgiven by your creditors. Cash savings is one advantage of engaging in debt settlement.

However, your credit report will indicate that your debt was paid for a less than agreed-upon amount, often lowering your credit score. We often recommend speaking with an attorney and tax professional before engaging in debt settlement. You will need to check your tax liability should you settle your debts. Keep in mind that debt settlement companies usually charge extremely high fees. They also offer clients no guarantees that they can succeed in settling their debt. In many cases, it is more advantageous to file for bankruptcy.

Contact Our Experienced Bankruptcy Lawyers Today

Before you consider any of these options, we recommend speaking with an experienced bankruptcy lawyer as soon as possible. At the Bankruptcy Law Center, our Los Angeles bankruptcy lawyers will evaluate your case and help you understand all of your options. If you decide to file for bankruptcy, we will help you through the process. Contact us as soon as possible to schedule your initial consultation.