Settle Your Debt Without Bankruptcy in Ohio
When you’re facing a wall of debt you just don’t know how to get over, you might think that your only option is to go straight to bankruptcy. This is especially the case if things have gotten to the point where you’re being sued by creditors as part of their collection efforts.
It can be scary dealing with a credit card lawsuit or persistent collection efforts, but you still have options. Bankruptcy is a great option if you need a fresh start, many of our clients are able to avoid that option and settle debt without bankruptcy.
Here’s what you need to know if you’re wondering what you can do instead of bankruptcy.
Why Should You Settle Debt Without Bankruptcy?
While options for bankruptcy are ever-present when you’re facing debt you can’t recover from, bankruptcy should usually be considered something of a last resort. That’s because while bankruptcy allows you to start over by wiping clean unsecured debts such as credit cards and medical debts, it is also a mark that will remain on your credit for 7-10 years (depending on the type of bankruptcy).
As you might expect, carrying a bankruptcy on your credit makes it much more difficult to get any sort of favorable credit or financing you may need until you’ve spent some time rebuilding your credit. But if you settle debt without bankruptcy, you can avoid the negative mark on your credit.
Settled accounts will help remove collections reports from your credit, giving you the ability to rebuild your credit from a higher and more favorable baseline than if you’d declared bankruptcy. That means better rates on lines of credit, and an easier time buying a car or house with better terms.
What if You’re Facing a Credit Card Lawsuit?
It’s a story I hear often – you’ve gotten letters from debt collection lawyers threatening legal action if you don’t settle your debt with them by a certain point. It’s a tactic designed to scare you into playing by their rules, but you don’t have to do that.
Maybe you’ve even been served papers and are actually being sued by Capital One, or Discover, or Mastercard, or some faceless collection agency.
Here’s a secret – those collection agencies usually would rather NOT take your case to court. It’s a hassle for them as well as you, and the court fees cost them money. It’s actually much easier for them if they can settle your account out of court, especially if you show you’re willing to fight the debt in court and not simply give them an easy default judgment by not showing up in court.
If you show a willingness to work with them, you can often work out more favorable terms that work better for everyone. Frequently you’re not actually being sued by Discover or Capital One, you’re being sued by creditors who have purchased the rights to your credit card debt for pennies on the dollar. Their goal is not to collect the full amount of your debt, they just want to collect enough of it to make a profit.
The process is a negotiation – and they are assuming you won’t know your rights or have the power to fight back for better terms. My job is to give you that knowledge and that power.
Don’t File Bankruptcy - Settle Your Debt and Save Your Credit
What all of this means is you have negotiating leverage to pay much less than the amount they’re asking for, while still clearing your debt. So even if you’re facing a credit card lawsuit, it’s not too late to settle debt without bankruptcy and save money in the process!
I will help you better understand your standing and rights, and we will work together to establish repayment terms that work with your budget while improving – rather than harming – your credit. So if you can, don’t file bankruptcy – settle your debt!
Contact us today for a free consultation on what your options for bankruptcy and debt settlement are, and remember – when you call, you talk to me, not a paralegal!
