At the Campbell Law Firm, we offer a FREE consultation to discuss your specific financial situation.
Your financial situation may be resolved without the need for filing for Bankruptcy protection. If this is the case, we will explain to you other options and advise you on what actions you need to take. Bankruptcy may not be the best course of action to obtain the debt relief you need. Depending on your situation, there may be other solutions that have less impact on your credit rating and take less time to implement.
Alternatives to Bankruptcy might include a debt workout or settlement where we will work directly with your creditors to negotiate a settlement of your debts. Your attorney will discuss the pros and cons of debt settlement in your initial consultation.
Normally the procedure for a settlement is as follows:
1. We write an initial letter to the creditor(s) advising them of our representation and advise that you have come to us to try to resolve your financial problems either through bankruptcy or a workout.
2. We prepare a settlement package with a hypothetical liquidation analysis along with a detailed letter of support concerning a settlement. This settlement package includes a very detailed summary of your assets and liabilities along with the Bankruptcy exemptions and hypothetical sales costs and other information. We usually include a draft of means test, disposable income and bankruptcy schedules to support our position. We also send the following if needed/ requested: a personal financial statement, appraisal of assets, bank statements, and pay stubs. The information is meant to show the creditor what it would get if you were to file a Chapter 7 (known as a hypothetical liquidation analysis) or Chapter 13 bankruptcy.
3. Depending on the situation, the goal is to offer a little more than the creditor would receive in a Chapter 7 or something less than the creditor would receive in a Chapter 13 (but the creditor would receive the money sooner than it would in a Chapter 13). Usually we can hope to settle around 30%-50% of the debt depending on the situation.
4. We review the settlement documentation with the client. The client approves any final settlement agreements.
5. After your debts have been settled, you will meet with your attorney for an exit conference where we will review where you have been, where you are and where you plan to go from a financial standpoint. Our goal is to help you learn to live on a no-surprise budget so you can have a successful financial future.
Contact our office to discuss a settlement or workout with an attorney.