We find that in some cases where the debtor has the ability to pay and there is only a minimal number of creditors, Bankruptcy may be avoided by negotiating a settlement with the creditor(s). There are also certain cases where Bankruptcy is not recommended due to other reasons such as possible loss of assets, ineligibility or other problem issues that may come up after a case is filed. In debt negotiation, creditors may settle for cash and greatly reduce the actual amount owed, agree to a monthly payment plan or a combination of the above.
Types of debts that can usually be settled include credit card debts, automobile repossession deficiencies (we see a lot of these), medical bills and personal loans. If the debts in question have been delinquent for quite some time and/or the statute of limitations to bring a lawsuit to collect the debt is about to run out, creditors may even be more willing to accept a much lower amount in satisfaction of the debt owed.
Of course, if a lawsuit has been filed, some creditors may refuse to settle especially if an asset search has revealed that the debtor is employed and/or has assets such as a home, bank accounts or other property against which a judgment may be enforced. If a creditor is unsure about whether such assets may be available, the creditor may later force the debtor after obtaining a judgment to appear in Court at a “Debtor's Examination” to inquire about the debtor's finances and assets. Thus, timing may be a critical factor when attempting to negotiate a debt.
Our fees are usually based on the amount of money saved as a result of the settlement. Thus, you can be assured that we work hard to get you the lowest settlements possible.
Main Office - Glendale
315 Arden Avenue, Suite 22 Glendale, CA 91203 Phone (818) 243-7745 Fax (818) 243-7795
Disclaimer: The information contained on this website pertains to the law and legal procedures in general. It is neither intended to give legal advice for any specific case or situation, nor does it create an attorney-client relationship. Bankruptcy Law is complicated and you should consult with an attorney before taking any action. Should you have any questions or concerns regarding the legal aspects of your situation, you should seek legal advice from a professional immediately. Ray Bulaon Law Offices, Inc. does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Thus, Ray Bulaon Law Offices, Inc. shall not be liable for any special, indirect, incidental or consequential damages, including without limitation, lost revenues or lost profits, which may result from the use of these materials. The information contained herein is subject to change without notice and does not represent a commitment on the part of Ray Bulaon Law Offices, Inc.
