Amberg, Amberg & Williams - Attorneys at Law
231-735-8575 or 866-447-9209

Debt Negotiation vs. Filing For Bankruptcy

If you are going through financial hardship, you have probably been receiving phone calls and letters from your creditors or from debt management companies offering you various options to get your finances back on track. Trying to understand their offers can be overwhelming. Before you enter a debt management program or engage in any debt negotiations, seek out an experienced lawyer for advice.

At Amberg, Amberg & Williams, we help people get through tough financial times. We help people get control of their finances through bankruptcy. We know that "bankruptcy" can be a scary term, but you do not need to feel ashamed of seeking its protection. In fact, bankruptcy is one of the most useful tools there is for rebuilding your financial life, and it is usually much more useful than any debt negotiation would be.

The Advantages Of Chapter 7 Bankruptcy Over Debt Negotiation

Chapter 7 bankruptcy completely wipes away all of your unsecured debts such as credit cards and medical bills. It eliminates debts from all of your creditors at once. Debt negotiations, on the other hand, have to take place with each creditor individually. If you have three large debts, you may be able to negotiate with one creditor, but the second and third creditors may choose not to work with you. Bankruptcy gives you the protection of the court, which orders creditors to accept your bankruptcy status.

Chapter 7 also provides many other benefits that a debt negotiation cannot, including:

  • Stopping home foreclosure
  • Stopping wage garnishments
  • Eliminating older tax debts
  • Halting pending lawsuits against you
  • Stopping creditor harassment

Chapter 7 is called "liquidation" because some assets are sold to pay your debts. However, that does not mean you will lose all your property. Our Traverse City bankruptcy lawyers can help you use exemptions to keep items like your car, furniture and other important property.

You may choose to surrender your home in bankruptcy. Moving into a smaller place with a more affordable payment may be a good choice for you, but remember, it is not a requirement.

Overall, most people benefit more from filing for bankruptcy than they would through engaging creditors in debt negotiations. There are some exceptions to this, however. When you visit our Traverse City office, we will sit down with you, analyze your situation and give you honest advice about what direction to take.

Contact A Traverse City Attorney

If you are in financial trouble, we are here to help. Call 231-735-8575 or 866-447-9209 for a free consultation. You can also send an e-mail to our firm.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Contact a Traverse City Criminal Defense Lawyer

Whatever your legal needs, our Michigan legal team has the skill and ability to help you reach a positive outcome. To arrange a consultation, please call 231-735-8575 or toll free 866-447-9209. You can also contact our law firm online.

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Amberg, Amberg & Williams
125 Park Street, Suite 100
Traverse City, MI 49684

Toll Free: 866-447-9209
Phone: 231-735-8575
Fax: 231-929-8341