Bankruptcy Attorneys Serving Frederick and Montgomery County Develop Alternative Solutions for You
Getting you out of debt without filing bankruptcy
Your family may not be a good candidate for bankruptcy. A good rule of thumb is that if you owe less than about $10,000 in unsecured debt (credit cards, payday loans or medical bills) and are no more than about a month behind on your secured debts (house, car or truck), you may want to consider a bankruptcy alternative. Our bankruptcy alternatives lawyers can help you choose the solution that meets your needs.
What are the advantages and disadvantages to bankruptcy alternatives?
With a bankruptcy alternative, your credit rating may not be as adversely affected by reaching a non-bankruptcy compromise. However, be aware that none of these alternatives provide legal protection or stop any pending or potential adverse action from the moneylenders.
What are some bankruptcy alternative options?
Our attorneys can give more information about the following bankruptcy alternatives and help you and your family to decide if one is right for you:
- Debt consolidation — Although this may not the best option, if an opportunity exists for you to take out a lower-interest loan to pay off some high-interest debt, the opportunity is at least worth exploring. Debt consolidation may be available through a credit counseling organization such as Consumer Credit Counseling Services.
- Debt reorganization — Assuming that you are not too far behind on any payments, you have a robust income and the moneylenders are at least somewhat sympathetic, a few months of financial juggling may be enough to provide a temporary solution and get you through your difficult time.
- Debt negotiation and settlement — Many times, debt buyers are willing to settle for 20 or 30 cents on the dollar. If you can offer a lump-sum payment, the debt buyer will probably listen to your offer. Your attorney may be able to negotiate the debt buyer’s report to the credit agencies, thus minimizing the adverse impact on your credit score.
- Loan modification — Between 80 percent and 90 percent of the borrowers who apply for a loan modification are rejected. The most likely scenario for an approval is if the borrower suffered some temporary loss of income but can now afford to pay off the arrears in full over time.
These are just a few examples of some of the alternative solutions available to you as a consumer who wants to get your finances in order without taking the step of filing for bankruptcy. Our experienced attorneys are here to consult with you and help you come up with a plan that works for you and your family.
Contact our Rockville, MD attorneys for a free initial consultation with a lawyer who cares about you
Many bankruptcy attorneys try to sell you a generic package deal without even really listening to your needs. At Wolff & Orenstein, LLC, our attorneys take the time to listen to you and perform an independent evaluation of your financial situation. Well known for our quality work, you can trust our Rockville bankruptcy law firm to recommend the right course of action for you and your family. For a complimentary initial consultation to discuss your case, contact us at 240-670-4991 or online. We serve Montgomery, Frederick and Prince George’s County and all of Maryland.