We realize that in some situations bankruptcy may not be the right choice for you. For this reason, we offer alternatives to bankruptcy such as:
Debt Resolution is an alternative to bankruptcy for many debtors. There are situations where a person has substantial credit card debt and, or other personal or business related debt but for specific reasons, the formal bankruptcy process is not desired. Thav, Gross, Steinway & Bennett, P.C. (“TGSB”), has have developed “Debt Resolution” as an aggressive approach where its attorneys, acting on your behalf, negotiate with the creditors to reduce principal and interest on the debts on a case by case basis. We take over all communications between you and the creditors and employ specifically designed legal strategies that result in significant debt and interest reduction.
Our strategy starts with a simple approach. We stop paying the monthly recurring payments on credit card debt and any other unsecured obligations (keep in mind -- your home and your car are secured obligations). By doing this, we put the money that was being paid to the credit card companies back in your hands and use this cash flow down stream to negotiate with the creditors. The creditors are then forced to negotiate with us on your behalf. In many cases, we use the threat of filing the bankruptcy as well as other strategies to persuade the creditor to accept a resolution that fits within our client’s budget and on our terms – and not the creditor’s terms.
There are other businesses that offer Debt Settlement or Debt Negotiation.
These firms employ clerical staff to seek offers from the creditors on
the creditor’s terms and charge very high fees for moderately successful
results. TGSB is very different from these so called “Debt Settlement
Companies.” When you hire TGSB, you are hiring a law firm that has
been in the business of helping clients for 25 years. Our attorneys will
handle your case and it is our attorneys who will fight and negotiate with
your creditors in order to achieve the intended result.
A Debt Resolution is reached when the creditor agrees to cancel part of
the debt and accept the remaining sum as full repayment. We negotiate with
your creditors individually. Typically, we attempt to reduce debts by 50%
or more of your current balances. In many cases, your creditors will accept
a smaller amount as the debt gets older and they realize you have a tough
attorney working for you.
Once the creditor agrees to a settlement amount, our attorneys will negotiate and prepare a written settlement agreement and arrange payment. As part of this process, we negotiate with the creditor’s to control what is reported to the credit rating bureaus in an effort to maximize your credit score.
The creditor’s primary incentive is to recover funds that would otherwise be lost if the debtor filed for bankruptcy or was uncollectible. Our strategy is designed to convince the creditor that our offer is the best that can be done in a difficult situation. By convincing the creditor that it’s better to receive less than nothing an acceptable result is achieved.
If Debt Resolution sounds like it might work for you, we encourage you to call or request our free evaluation to discuss your specific financial situation with one of our attorneys.
Often on TV, you will see credit counseling advertised as the best debt solution for you. If you’re suffering from excessive credit card debt, and have significant extra funds left over after you pay your monthly living expenses, you may find relief through a debt management plan or budget counseling. Credit counseling, however, can not help you with past due auto or home payments; for this help you will want to know more about Chapter 13 bankruptcy protection.
A Debt Management Plan (DMP) can help with unsecured debts such as credit cards, personal loans, lines of credit, and store cards. A DMP consolidates all your unsecured debt into one payment that you make to a credit counseling agency. The agency then pays your creditors for you.
A few big problems with Debt Management Plans are that your current monthly payment will be about 2.2% -2.5% of your current balance. Just about what you are currently paying. Your interest rate will only go down to about 10% - 12% depending on which creditors you have. This means you will not be out of debt for at least five to six years.
Another shortcoming of the DMP is that it is most effective dealing with
the original creditor, not collection agencies.
Be careful in your selection of agencies. While the vast majority of non-profit
agencies will provide the quality of service you deserve, there are some
bad apples out there. Always ask about the counselors credentials when
selecting an agency.
Check to make sure the agency is licensed in your state and a member of a national association such as the AICCCA or National Foundation for Credit Counseling.
While many credit counseling agencies provide educational materials online, the benefits of personal counseling should not be overlooked. Look for a local agency such as GreenPath Debt Solutions or Consumer Credit Management in Michigan. They are state licensed, accredited by either the Council on Accreditation or AICCCA, and are members of the Better Business Bureau and/or the NFCC.
A mortgage forbearance agreement is made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage. The borrower then agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her payments.
A forbearance agreement is not a long-term solution for delinquent borrowers; it is designed for borrowers who have temporary financial problems caused by unforeseen situations such as temporary unemployment or other financial instabilities.
If you find yourself falling behind on your mortgage, your lender may seem willing to help you at first by suggesting this type of agreement. The first step will typically involve the submission of detailed financial records to your lender. This process may resemble your original loan application. Essentially, your lender is evaluating your financial stability to ensure that you are worth the risk of allowing you to attempt to pay back the past due amounts you owe them.
Many borrowers will suffer a great deal of frustration during this process, as the clock running down towards foreclosure remains ticking while the lender considers the merits of the proposed forbearance agreement. Often a decision does not arrive until the 11th hour.
In most cases, your mortgage lender will only allow a maximum of six months to pay back the total amount of arrearage, while requiring you to pay all other monthly payments as they come due. This amount is often simply too much to afford. Mortgage forbearance also does not help with other debt that is generally associated with financial distress.
TGSB can assist you in negotiating and evaluating the beneficial terms of a Mortgage Forbearance Agreement. More importantly, if you are dealing with the problem of trying to answer this question:
I only have $X,XXX.00 Dollars, who should I pay – the mortgage company or the credit card companies?
The answer is – if you want to save the home – pay the mortgage companies first – NOT the credit card companies.
Keep in mind, however, if you have asked this question, you need to call us for a free Evaluation of your situation.
"We were not interested in filing for bankruptcy and were very worried about how we could resolve our debt. Stop Creditor Calls provided us with an acceptable alternative."
