Alternatives to Bankruptcy

Many debtors in Atlanta want to know if there is a way to avoid filing bankruptcy and still resolve their debt problems. For some people, avoiding bankruptcy is the best option, and there are ways to settle debt, defend a lawsuit, or modify loans.

Debt Consolidation

Most people who opt to settle debt are those who have very little debt or those who have too many assets or too much income to file bankruptcy. People looking to settle debt have success when they have a lump sum of money to offer the creditor rather than only a monthly payment. Those who wish to consolidate debt into a monthly payment without filing bankruptcy can look into doing so through Atlanta consumer credit counseling companies; however, debt consolidation does not offer the protection of the bankruptcy court's "automatic stay" that prevents creditors from collecting debts.

Defending Garnishments and Lawsuits

Some people may have the option of defending lawsuits and garnishments filed by creditors instead of filing bankruptcy. Available defenses are failure to properly serve the debtor, filing a lawsuit outside of the statute of limitations, or failing to prove that there is a claim. For garnishments, there is an option to file what is known as a "traverse." A traverse is usually successful where a creditor wrongfully garnishes a joint bank account where the joint owner does not owe the debt, wrongfully garnishes protected money such as social security income, or where the original judgment is not valid.

Home Loan Modifications in Atlanta

In the past few years, the failing housing market has prompted much buzz about home loan modifications. Although many homeowners have successfully modified their home loans, it is difficult to do, as the banks and mortgage companies are not set up to make those modifications happen easily. There are some HUD-certified agents that may be able to assist with modifications as well. Most mortgage companies ask for documents showing hardship, income, debt, and budget to get started on a modification. Some modifications put mortgage arrears on the back end of the loans, lower interest rates, and lower monthly payments.

Free Consultation With Atlanta Bankruptcy Attorney

To make an inquiry about bankruptcy and alternatives to bankruptcy, please call Law Offices of Charles Clapp at 404.585.0040.