One of the things I like about being a bankruptcy lawyer is helping people avoid bankruptcy. Believe it or not, that’s my primary objective when someone comes in for a consultation. I try to look at their financial situation from every possible perspective to see if there is an alternative to bankruptcy.
One way that I can help someone avoid bankruptcy is when they are dealing with a particularly aggressive creditor with the potential client has tried to settle. The potential client has tried to negotiate a settlement, but the creditor won’t give any ground. If the potential client retains me, I get to work preparing a petition. I go over all of his income, assets, debts, and expenses. Whether the client is eligible for Chapter 7 or has to file Chapter 13 bankruptcy, we now have leverage to negotiate settlement. Most times the creditor will receive much less if my client files bankruptcy than if it agrees to settlement terms.
Even if the settlement offer is the same as before the client came to me, my position as a bankruptcy lawyer adds weight to the negotiations.If the creditor asks for it, I can provide a draft of the bankruptcy petition the client intends to file if settlement talks fail.
Of course, my client also needs to understand the potential tax consequences of debt settlement. That’s a factor he’ll have to weigh in making the decision to settle the debt or filing bankruptcy. Bankruptcy eliminates the tax consequences of debt forgiveness.
If you need help settling your debts, we hope you’ll come in for a free consultation with an experienced Colorado bankruptcy attorney to see how we can help. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.