While bankruptcy can often be an ideal debt relief option if you are facing financial hardships, there are times when alternatives to bankruptcy should be used. In St. Louis, Missouri, and surrounding areas, Karfeld Law Firm, P.C., helps individuals find ways to overcome debt when bankruptcy is not the most favorable option.
Our St. Louis attorneys have more than 30 years of experience in various aspects of bankruptcy proceedings. Edward J. Karfeld spent years as a bankruptcy trustee and Donna L. Karfeld has done substantial work in collections. Together, this comprehensive experience can help you negotiate with creditors and find ways to manage your debts without filing for bankruptcy.
Customized Solutions Outside Of Bankruptcy From St. Charles Debt Settlement Lawyers
Some examples of alternatives to bankruptcy are:
- Lump sum settlement with creditors: In some cases, it is ideal to just get the debt off your plate as soon as possible by offering a creditor a lump sum payment. They may be amenable to an offer like this, even if the lump sum does not completely cover the debt, because it could promise them more money than if debts were discharged through bankruptcy. Still, there are complex taxation issues to consider, as any debt that is forgiven by your creditor could be declared taxable income.
- Payback settlement, payback workout: We may be able to work with your creditors to discuss options for varied payback arrangements. For example, if an individual has $600 in disposable income, you may be able to offer creditors a prorated share. There are disadvantages to this, such as the toll it takes on your credit score and the expense associated with negotiating a deal, but in some cases it is still worthwhile.
Each situation is highly nuanced, and the debt relief choices you make should reflect your individual need. We work closely with our clients to inform them of their rights and responsibilities and what methods can best protect their financial future.
We offer free confidential consultations via telephone. Contact our firm online or call us at 314-732-0748 (toll free at 888-389-6807).
We are a debt relief agency. We help individuals, businesses and government entities file for bankruptcy relief under the Bankruptcy Code.
Count on Our Experience to Work for You