If you’re facing financial difficulties, you may feel like you’re facing challenges without meaningful tools for dealing with them. It’s an understandable feeling and one that virtually every struggling debtor experiences. However, more often than not, that feeling is not an accurate reflection of reality.
Debtors may have as many as three meaningful options when dealing with financial distress. First, you may be able to work with your creditors to secure debt relief. In a large number of instances, a private creditor may cut you a break, forgiving some or all of your debt. Your creditor may also propose paying more now – a lump sum – and writing off the remainder. Before you get too frustrated with your financial predicament, it may be wise to explore your debt relief options.
Of course, in many instances, your creditor doesn’t want new promises, new money or new agreements. They may just want cold, hard cash. If that’s the situation you face, you may be backed into a corner, forced to consider meeting your obligations in full or filing for either restructuring bankruptcy or liquidation.
For debtors who meet the means test, Chapter 13 restructuring may let you keep more of your assets, extend your debt and find a soft place to land. For debtors who do not meet the means test, Chapter 7 liquidation may be the only arrow in your quiver. When that’s the case, it’s important to take every precaution to ensure that you liquidate your debts correctly – the first time.
Want to know more about your options – relief, restructuring or liquidation – and what’s the right course of action for you and your family? The dedicated and experienced attorneys at the law firm of Fears Nachawati are prepared to help you. Speak to us today for your free consultation. We’re committed to helping people just like you.