GRAND RAPIDS BANKRUPTCY ATTORNEY – NONBANKRUPTCY OPTIONS
When you are facing financial problems and have questions about your bankruptcy and nonbankruptcy options to fix your debt problems in the Grand Rapids area, it is important to have the representation of a good bankruptcy attorney. Krupp Law Offices P.C. has been providing quality bankruptcy representation for over 85 years. If you are facing financial problems and have questions about bankruptcy and non bankruptcy options, call the bankruptcy attorneys at Krupp Law Offices P.C. for a free phone consultation. During your phone consultation, our attorneys will provide you with immediate answers to your questions and schedule a free appointment with one of our bankruptcy attorneys.
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OPTIONS FOR NOT FILING BANKRUPTCY - NONBANKRUPTCY OPTIONS
1. DEBT COUNSELING (NONPROFIT OR NOT)
2. DEBT SETTLEMENT ORGANIZATIONS.
3. WORKOUTS WITH THE CREDITORS.
DEBT COUNSELING COMPARED TO BANKRUPTCY
The most common option before filing is bankruptcy is debt counseling. What the companies do is take your debt and divide it over a period of time. You pay them and they pay your bills for you. In theory it sounds like the perfect solution. There are some problems with debt counseling services that they typically do not want to discuss. First, it isn’t free. There is always a fee or percentage. Even nonprofit is not free! They typically charge a percentage of the debt (7% for example). Do the math because it can be a lot of money. Second, debt counseling cannot stop law suits or collection calls. Third, often times their payment schedule is unrealistic. You payment plan assumes a “perfect life” for 60 to 72 months. This means no auto repairs, no Christmas gifts, no new roof, and no new furnace in the middle of the winter. Also, interest is still being added. It is important that you do the math on your repayment plan. If it exceeds 60 months or doesn’t propose a realistic budget, then it will not work over the long run.
DEBT SETTLEMENT ORGANIZATIONS COMPARED TO BANKRUPTCY
These places are usually big scams. The theory sounds great, but in reality they are unworkable. The theory is that you pay them a monthly amount. When they save enough of your money (half of the bills). They will call a creditor and offer them 50% of the debt. The creditor accepts the settlement and they move on to the next debt until they are all settled. It sounds great until reality hits you. First, they charge a “set-up fee” that is from 1,500.00 to 2,000.00 dollars up-front so that when you drop out they have already made money. Second, they charge you a monthly fee to keep your account going. Third, some charge you 50% of what they “save you”. This amount can be thousands. For example, if you have 40,000 in credit cards and they cut the amount in half, you would owe them 10,000 dollars! Third, they do not stop law suits or collection calls. While they are saving your money to settle your debts, you are still getting the phone calls and law suits. Typically, someone sues you and then you cannot pay the organization. They keep the set-up fees and other fees and you finally realize that you must file bankruptcy and you have paid them about 4,000 dollars or more. What a deal!
WORKOUTS WITH CREDITOR COMPARED TO BANKRUPTCY
This option works if you have access to a large sum of money (30% to 60% of your total debt). For example, you have sold an asset for 30,000 and you owe 60,000.00 in debt or you have a relative that would loan you 30,000 if it eliminates your debt. How it works is simple. We contact your creditors and tell them that you came to see us to file bankruptcy. After reviewing your finances, a relative will loan you 50% of the debt if it settles the full amount. We have them fax a confirmation and tell them that they will receive 50% in 3 weeks or less. We send them the money that you provide us. We send them an attorney’s check from our trust account (you give us the money). We bill you by the hour for this service. Usually creditors take us more seriously than if you contact them directly (although you can try). These are the typical options to not filing bankruptcy. Unfortunately, most do not work for the reasons stated above. Filing for bankruptcy is typically the most cost effective and realistic solution. Typically, attorney’s fees for a chapter 7 bankruptcy will be about 1,300.00 to 1,800.00 dollars and attorney’s fees for a chapter 13 bankruptcy will be about 2,600 dollars (typically paid through the plan). After reviewing your budget, you should prepare a listing of all of your debts including interest rate of each debt. At that point, you should contact our office to discuss your options under chapter 7 and 13 bankruptcy.
If you are facing financial problems, a good bankruptcy attorney is not optional, it is a requirement! Our bankruptcy attorneys can answer your questions with straight talk. Having the right bankruptcy attorney on your side can relieve your stress during difficult financial times. Our bankruptcy attorneys have over 85 years of bankruptcy experience. We can provide you with excellent bankruptcy representation.
Krupp Law Offices P.C.is located in downtown Grand Rapids, Michigan and has the right bankruptcy attorney for you. We represent clients in all bankruptcy matters throughout West Michigan, including the cities of Grand Rapids, Holland, and Grand Haven, and the counties of Kent, Ottawa, Allegan, Barry, Newaygo, Montcalm, Muskegon, and Ionia.
Our office can help.
161 Ottawa NW Suite 404
Grand Rapids MI 49503