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Credit Card Debt

Get Rid of Credit Card Debt Without Filing Bankruptcy

Want to know a secret? The closer a creditor thinks you are to filing bankruptcy the more likely they are to settle with you for pennies on the dollar.

It’s true, and it makes sense. If you end up in bankruptcy, the credit card companies get nothing. Zero. Zilch. Of course, they don’t want you to know that. And they certainly don’t want you to know how low they will actually go. With the average debtor, they are going to continue to play hardball to see how much they can get. They might try to intimidate you into settling for higher amounts than necessary and could try to confuse you by making the debt reduction process unnecessarily cumbersome. That is why having a professional credit card settlement attorney on your side can make all the difference.

At McFarlin LLP, our aggressive credit card settlement attorneys stand up to the credit card companies and collection agencies to negotiate on your behalf to legally reduce your overall debt. We also work hard to fashion a payment plan that makes sense for your particular circumstances.

Debt Settlement or Bankruptcy: Which is Better?

Many people burdened by overwhelming debt think that the only way out is through bankruptcy. But debt settlement can often allow you to get the same result — lawfully eliminating credit card debt — without all the fallout that bankruptcy can cause.

It is true that both bankruptcy and debt settlement involve debt forgiveness, but that is where the similarities end. With bankruptcy, you could incur negative effects for years to come:

  • Bankruptcy will be reflected on your credit report, which many people want to avoid.
  • In bankruptcy, there is a risk that the bankruptcy trustee sells assets such as a home with equity, settlement does not involve a court appointed trustee.
  • Settlement is less formal, and less of a comprehensive examination of your finances.

Bankruptcy is widely considered a last resort as there is still a social stigma attached, however our office frankly doesn’t see it that way, bankruptcy is a tool for consumers if they choose to use it, however many prefer settlement, which is also available in most cases.

You Might Not Qualify for Bankruptcy

To be eligible to file for bankruptcy under Chapter 7, you must meet a statutory “means test.” In other words, your monthly income for the six months preceding the bankruptcy filing will be scrutinized, may people do not want that scrutiny.

People are often surprised that even though they are struggling to make ends meet, they aren’t able to file Chapter 7 bankruptcy because their income exceeds the threshold amount. The bankruptcy court looks at all the money you have coming in, including and spousal or child support, investment income, and bonuses, to name a few of the additional items that could cause you to fail the means test. If you have disposable income, the bankruptcy court could conclude you have the means to pay off your debt and push you into a repayment plan for creditors over five years.

Almost Anyone Can Qualify for Debt Settlement

Compared to bankruptcy, qualifying for debt settlement is easy. As long as you have a means of obtaining income, McFarlin’s credit card settlement attorneys can probably negotiate a settlement program that will get you out of debt and allow you to move on with your life.

At McFarlin LLP, our job is helping people in Southern California just like you get out of debt. If you would like to weigh your options for debt relief, we are ready to sit down with you to see how we can help. Call us at 949-544-2640 or set up an appointment online with one of our Irvine, California-based lawyers today. The appointment is free.

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