Sacramento Bankruptcy Attorneys-Alternatives to Filing for Bankruptcy
Depending on your personal situation, opinion and the amount of debt that you have, we may consider bankruptcy a last resort option for you, we always research and investigate all other potential ways to relieve your debt issues before recommending bankruptcy, dependent on your individual situation and wishes.
If it is a real estate situation that is plaguing you, we have many different ways to deal with real estate issues, including negotiating with your lender for a short sale, settlement, short pay or deed-in-lieu of foreclosure.
If you have judgments, medical bills or other debts that you are having trouble affording we can also negotiate a settlement with your creditors.
If you have a few creditors, debt negotiation may also be an option. Please be advised that we are not a debt consolidation company, and we do not practice debt consolidation whereby you make payments to us for a year or longer, which we keep in an “account” and then try to settle with your creditors. Unfortunately, we have seen the results (or non results rather), that these companies get people, in fact many of our clients who have filed for bankruptcy, have done so after years of trying to negotiate their debt through the use of such companies, unsuccessfully. This has led to damaged credit, lost money to the companies, and even lawsuits, and the end result is the same, bankruptcy after years of frustration and angst.
Options for Businesses
For businesses, a company that runs into serious financial difficulties has alternatives to bankruptcy. It can liquidate the business on its own and make payments to its creditors. Such action may be achieved efficiently if the creditors are few and the assets can readily be converted to cash. If the number of creditors is large and the assets are numerous and difficult or time-consuming to sell (such as real estate), the protection, structure, and authority of the court may be needed.
Another option is for the company to place liquidation of assets in the hands of a trustee who subsequently pays creditors. The principal advantage of this avenue is that the assets are thus protected from individual creditors who might otherwise file liens on the assets. Composition agreements, meanwhile, can be used in situations where creditors agree to receive proportional (pro rata) payments of their claims in return for freeing the debtor company from the remainder of its debts.
These alternative strategies may enable some business owners to avoid bankruptcy. But pursuing these options involves considerable risk: astute creditors will recognize such actions as precursors to bankruptcy and may modify their relationships with the company, which could precipitate a bankruptcy filing. If creditors believe that continuing in business will result in reduced assets, they may force a bankruptcy in order to stop operations and preserve the existing assets to pay outstanding debts.
Experienced Sacramento Bankruptcy Attorneys
We are experienced Sacramento Bankruptcy Attorneys. We have helped thousands of individuals and businesses get the relief they need from their creditors through the use bankruptcy by filing a Ch. 7, Ch. 13, credit card debt negotiation or debt settlement and have successfully dealt with adversary proceedings brought by difficult creditors. Our bankruptcy attorneys have achieved proven results and can give you the great legal advice and strategy needed to get you the results you want. Contact us today to schedule your complimentary attorney consultation by clicking HERE or by calling 916-999-1376. We look forward to helping you with all of your Sacramento bankruptcy needs.
