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When it comes to bankruptcy law, experience and relationships are paramount to a successful bankruptcy filing. Attorney Parisa ...

Debt Settlements in Orange County

Bankruptcy is not always the only or best option for dealing with your financial difficulties, and Fishback Law Corp in Irvine may be able to solve your troubles by negotiating a debt settlement that reduces the amount you owe to an amount you can afford to pay off.

Why Would Creditors Agree to a Debt Settlement?

Alternative to Bankruptcy - A creditor who is pushing you to pay a debt knows that at any time, you may file for bankruptcy. If that happens, the debt may be fully discharged by the bankruptcy court, meaning you won't owe the creditor anything. Rather than risk receiving no payment at all, the creditor may be open to negotiating a debt settlement.

Alternative to Litigation - You and the creditor may have a genuine dispute about the amount that is owed on a debt, or even whether the debt is valid or exists at all. Such a dispute may have to be resolved through litigation, which can be expensive and time-consuming and result in the creditor losing the case and receiving a lesser amount or nothing at all. By agreeing to a debt settlement, the creditor avoids the time and expense of litigation as well as the risk of losing in court.

Is Debt Settlement Better Than Bankruptcy?

Debt settlement is not right for every person or every situation. For one thing, a debt settlement does not lower your monthly payment to the creditor; rather, the negotiated amount must be paid off in one lump sum. If you don't have the cash available to make this payment, then you will not be successful in negotiating a debt settlement. Another factor to consider is the number of different debts you are having difficulty with. You would have to negotiate a different debt settlement with every creditor, and there is no guarantee that you will be successful with any of the creditors, let alone all of them. Failing to negotiate a debt settlement with just a few large creditors may still leave you overwhelmed with your bills.

A bankruptcy, on the other hand, brings all your creditors together into one proceeding. There is no negotiation with each individual creditor, and all creditors are bound by the bankruptcy ruling, which may be either a discharge of debt (Chapter 7) or an adjustment of debts into one manageable monthly payment (Chapter 13). Depending upon your unique set of circumstances, bankruptcy may be a better option than debt settlement.

Experienced lawyers serving Orange County, CA

At Fishback Law Corp, we engage in all manner of debt reduction options, including novations, accords and satisfaction, loan modifications and workouts. Our experience with Orange County bankruptcy litigation provides us with the background and skills to effectively negotiate on behalf of our clients with creditors who know we mean business and will take necessary measures to find effective debt relief for our clients. In addition, we work beyond bankruptcy to help you rebuild and restore your credit. Regarding debt settlement, we will work to make sure your debt is marked paid in full on your credit report.

Contact the Fishback Law Corp to discuss your unique set of circumstances, and let us advise you and assist you through whichever process is best for you.

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