Bankruptcy Alternatives
In certain instances, a bankruptcy filing is not the appropriate solution to a consumer’s financial difficulties. These instances can include situations where there are very few creditors, or where preservation of the client’s credit score is necessary due upcoming purchases or refinances.
Alternatives to bankruptcy include debt settlement, negotiated settlement of lawsuits, or assertion of defenses, such as the statute of limitations, in a debt collection lawsuit. We have strong consumer protection goals. We protect our clients from over-zealous debt collectors and credit reporting agencies.
Hindley Law office has successfully negotiated numerous settlements for clients which allow them to avoid filing bankruptcy. This option will be explored during initial consultations so a client is provided a full set of options.
Hindley Law Office has also defended clients in debt collection lawsuits by asserting various defenses to those actions. We ask the right questions and will ascertain any available defenses.
Please be aware that debt settlement does have tax ramifications under the IRS Code. Forgiven debt is taxable income and creditors will issue a 1099-C for cancelled debt if a settlement is reached. Consumer bankruptcy, and the discharge of debt, is not a taxable event. This is an important consideration many attorneys fail to recognize when advising clients. Put our wealth of experience to work for you knowing that all options have been explored and the consequences of each action thoroughly explained.