No one want to file bankruptcy, no matter how bad it looks. Fortunately there are options. We always look at the option of a “workout” if possible.
A “workout” is simply a negotiated agreement (out-of-court) between the debtor and the creditor for repayment of the debt held by the creditor.
Why choose a negotiated workout? The first and largest reason is to avoid filing for bankruptcy. Bankruptcy is a legal court ordered judgment that remains on a filer’s records for up to ten years. Filing for bankruptcy will most likely damage your credit and ability to borrow for a long time.
However, utilizing a workout does not affect a debtor’s right to file a bankruptcy at some future date, therefor reserving that option. In addition it is possible that a workout could have the same or even better results than a bankruptcy.
Since both the debtor and creditor are willing participants in the negotiation, results can be an improvement over bankruptcy.
Please contact us for more information.