Alternatives to Bankruptcy in Jacksonville

Bankruptcy Lawyer in Jacksonville

Bankruptcy is the final step to rid yourself of overwhelming and crushing debt. There are alternatives to bankruptcy. Meeting with a Jacksonville bankruptcy lawyer from our firm as soon as possible is a wise step to take since we will be able to advise you reliably on the best course of action for your unique set of circumstances. One alternative to bankruptcy would be debt consolidation. If it's not too late financially, and you are able to qualify for a consolidation loan, this is an option for you. Debt settlement is also an option, but there is currently no regulation or certification process for this industry.

Debt Settlement Traps

The process of debt settlement generally includes the process of negotiating with creditors, usually credit card companies, in order to pay less than you owe to satisfy the debt. If you currently owe $8000 on a credit card, and have fallen behind on the monthly payments, the credit card company may offer you the deal of having to pay only 75% or even 50% of the balance, and forgive the remaining debt. To attempt to qualify for debt settlement arrangement, the creditor may require you to have the settlement amount paid out over a very short amount of time, such as three months, or require it in the form of a lump sum.

There are some hazards to this method. The process of settling your debt can affect your credit worse than a bankruptcy. He contant threatening calls from creditors will NOT stop. They will continue until the settlement is finalized. It is not uncommon for the creditors waiting to be "settled" to sue the debtor.

Settlement companies frequently neglect to mention the tax liability from their method. If you "settle" a $9000.00 credit card balance for $5000.00, the $4000 difference that was settled can be considered "income" and subject to taxation by the IRS.

Filing for bankruptcy is a legal solution and can often be the simplest and easiest way to get out from under your debt.

Contact a Jacksonville bankruptcy lawyer to discuss your options.