If you are genuinely considering bankruptcy, unsecured creditors may agree to settle for a pittance because when you do file for bankruptcy, they wouldn’t receive anything. Assume you borrowed $50,000 to start a business, which never got off the ground. There’s no way you can repay this debt and all you own is a modest home, an old car, and a pension. If you file bankruptcy, the lender will not receive anything. If you offered the creditor the money that you will otherwise spend on filing bankruptcy, about $1,000, he should agree to take the money and write off the debt. A thousand dollars is still better than nothing, plus you avoid filing bankruptcy.
The success of this kind of strategy depends on convincing your creditor that you’re truly prepared to file bankruptcy. The best way to accomplish that is to a hire a well-known bankruptcy specialist to handle the negotiation. That way, the creditor knows you are serious. But don’t ever bluff or threaten bankruptcy unless you’re truly prepared to turn in that direction, consult with a bankruptcy lawyer Carmichael.
If you are having financial hardship and are considering filling for bankruptcy, please call bankruptcy lawyer Carmichael at our office at (916) 971-8880 for a FREE confidential bankruptcy consultation.
Click here to fill out our FREE Confidential Bankruptcy Case Consultation form.
“We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
Law Office of Robert W. Fong
Robert W. Fong
6825 Fair Oaks, Blvd., Suite 101
Carmichael, CA 95608
TEL: (916) 971-8880
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