Alternatives to Bankruptcy - Northampton Attorneys

Credit Counseling - Lawyers in Hampshire, Franklin, Hampden and Berkshire Counties

Learning about the advantages and potential disadvantages of bankruptcy does not mean that you have to file a bankruptcy petition. It means that you are serious about taking control of your financial life and taking actions with the best chance to improve your situation.

Ostrander Law Office is a bankruptcy and debt relief firm with an office in Northampton. Before we file a bankruptcy petition for a new client, we explain various alternatives to bankruptcy and examine the client's assets and debts to determine which course of action best fits the circumstances.

With experienced debt relief lawyers — two of whom are certified in Consumer Bankruptcy Law by the American Board of Certification — we offer our clients confident and knowledgeable advice about bankruptcy and alternatives to bankruptcy. Contact our Northampton law firm today to schedule a free consultation if you have questions about alternatives to bankruptcy, avoiding bankruptcy or credit counseling. Ostrander Law Office serves clients throughout central and western Massachusetts, including Hampshire, Franklin, Hampden, Berkshire and Worcester.

Debt Relief Agencies as Alternatives to Bankruptcy: Tax Consequences

Frankly, debt relief agencies are rarely positive alternatives to bankruptcy, frankly. When you settle a debt with the help of a debt relief agency, you may be taxed on the amount of forgiven debt. This is called "phantom income" and it's as if you earned the money but didn't have taxes withheld! On the other hand, debts forgiven through bankruptcy are NOT taxable.

Private Agreements With Your Creditors

Some people attempt to make private payment or partial forgiveness agreements with their creditors. These agreements may be successful, to a degree. However, how do you know you are getting a good deal? If you are planning private debt settlement agreements, first discuss your circumstances with a bankruptcy attorney who can tell you what percentage of your debt would be forgiven through bankruptcy. You can learn whether your proposed private agreement is in fact a better solution than bankruptcy.

Use Home Equity to Pay Unsecured Debt: Risk Losing Your Home

Are you thinking about using a home equity loan to pay down unsecured debt like credit cards or medical bills? There are disadvantages — and some advantages — to doing so. Before you make the decision to increase the size of your mortgage and potentially jeopardize your home, consult experienced debt relief attorneys who can help you make the right decision.

For further information about alternatives to bankruptcy, contact Ostrander Law Office in Northampton for a free in-person consultation.

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