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Denver Lawyer Clark Daniel Dray

Bankruptcy Alternatives

Practiced Bankruptcy Attorney in Denver, CO

Seek alternatives to bankruptcy before filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy. Your best option may occasionally be to take non-bankruptcy legal action. 

Our skilled bankruptcy attorneys from the Law Office of Clark Daniel Dray can identify the most effective approach to achieving your objectives and finding comfort from the stress of debt. If you want to find the best option to eliminate your debt, call our law firm right away.

Why Do You Need a Bankruptcy Lawyer in Denver, Colorado?

bankruptcy alternatives denver, coThe Denver law firm focuses on bankruptcy and estate planning. Clark Daniel Dray is an experienced bankruptcy lawyer in Denver and a graduate of the Ohio State University Moritz College of Law. Asset protection clients usually demand tax relief and are in complicated financial situations. 

Here are some reasons to hire Clark Dray:

  • Personalized bankruptcy relief solutions: Only one attorney will oversee your case from beginning to end
  • Easy accessibility: As a small law office, we make it easy to get ahold of our reliable attorneys.
  • Keep it simple: Bankruptcy is full of legal jargon that can confuse anyone. We explain the intricacies of the law to our clients so they can make informed decisions. 

If you feel helpless about your finances, a competent bankruptcy attorney might be able to help you take back control.

Alternatives to Bankruptcy 

There are six alternatives to filing bankruptcy:

Stop Creditor Harassment 

Bankruptcy may not be the best option if your sole issue is that creditors are bothering you. The Fair Debt Collection Practices Act (FDCPA) lets the debtor have the power and be protected from the creditor’s unfair and deceptive practices. 

Debt Settlement

Debt settlement is negotiating with your creditors to lower the amount you owe or renegotiate your repayment plan. Two points concerning this choice should be noted. The first is that there may be tax repercussions if you convince a lender or credit card provider to lower your balance. A tax record proving that you are “earning” $5,000 in “forgiven debt” will be issued to you at the end of the fiscal year. For instance, if Visa decides to resolve your case for $5,000 (often in a lump sum payment) despite your current $10,000 card debt.

Debt consolidation 

This option entails merging your debt into a solitary credit line. One possibility is to combine all your credit cards into a single line of credit. You can increase your savings by submitting a single bank statement monthly. 

You may also find some comfort if you can obtain a card with a lower interest rate. 

Here are some tips to prevent using the new credit card while you are paying it off: 

  • You must be diligent in making this decision;
  • Do not use a credit card to cover your monthly necessities like food and gas. You may not even make as much progress as planned in paying off your outstanding debt once you keep doing this. 

Seek Credit Counseling

Negotiating with creditors or debt collectors can be intimidating for many people. The process can be too painful to endure because you lack confidence in your negotiation abilities or because the borrowers and credit counseling agencies are so obstinate.

A nonprofit credit or debt counseling organization can assist you if you cannot settle claims independently. Several organizations might help you repay your overwhelming debt and boost your finances.

Debt Management Plan

Debt management plans offered by credit counseling or debt relief organizations resemble Chapter 13 bankruptcy filings in several ways. Like a Chapter 13 plan, the organization will assist you in creating a strategy to pay off your debts. But one benefit of dealing with a credit or a debt counseling service is that your credit record won’t show bankruptcy.

In contrast to Chapter 13 bankruptcy, a debt management plan also has significant downsides, and here are the following: 

  • Chapter 13 shields you from creditors who would pursue collection efforts if you fail to pay on time. There is no guarantee in a debt management program; therefore, your plan could be canceled by any one collector. Additionally, you are typically required to pay off your obligations completely under this debt program. Chapter 13 bankruptcy requires paying a tiny portion of your unsecured debt. 
  • Frauds involving debt management and debt settlement are also prevalent. Numerous businesses are only interested in getting paid for their services; they do not even care about assisting you. Decide to enroll in a plan only after serious consideration.

Since creditors provide most of the funding for credit counseling services, public organizations have addressed their worries about these organizations. Critics assert that these organizations may thus experience a contradiction between the demands of their supporters and clientele.

Do not take any action. 

People are often surprised by this choice. A collector can take several actions when they obtain a verdict against your bankruptcy case. They can put a lien on a home and withhold your wages, bank account, and other assets if you own a home.

If you have little income and property and have little chance of improving your situation, you may be “judgment proof,” which means that anyone who sues you and obtains a court judgment cannot receive any payment because you have nothing to legally claim, regardless of whether you live with minimal earnings and assets and anticipate a similar situation shortly.  

Doing nothing is a viable option since you usually cannot be jailed for not paying your debts. Creditors can’t also take away essentials to force you to pay up.

By closely collaborating with you to determine the most effective approach to achieving your objectives, we help people find relief from the burdens of debt and peace in knowing that they have a plan for the future. 

The Law Office of Clark Daniel Dray can offer the service and attention to detail necessary for a successful solution by working with a small number of clients on a concentrated and interconnected spectrum of issues.

Schedule a Free Consultation with Our Denver Bankruptcy Firm Now!

Dealing with overwhelming debt causes a variety of issues. You deal with budget gaps, innumerable overdue debts, and constant calls from creditors daily. However, things don’t have to be that way.

Additionally, bankruptcy attorneys of The Law Office of Clark Daniel Dray welcome discussion regarding the resolution of your financial situation and verified claims for personal guarantees against the officials, directors, and shareholders. For a free consultation, contact our firm immediately so we can help you through your bankruptcy process and attain debt relief.  

Denver Lawyer Clark Daniel Dray

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