West Palm Beach Non-Bankruptcy Workout Attorney
Facing large amounts of debt can be terrifying. Not only may you be unsure about how you will pay all of your bills, but you may also be scared to open the mail or answer the phone, lest a debt collector threaten action against you. While it can be challenging, ignoring your debt is the last thing that you should do. If you don’t want to file for bankruptcy, a non-bankruptcy workout may be a viable alternative. Our West Palm Beach non-bankruptcy workout attorneys at the law office of Bruce S. Rosenwater & Associates, P.A. can help.
What Is a Non-bankruptcy Workout?
There are many reasons that a debtor may not want to file for bankruptcy, including that bankruptcy can be time-consuming, embarrassing, and can have a long-term negative effect on a person’s credit score. However, a person may have no option but to take some sort of action to manage their debt – a non-bankruptcy workout may be the best option.
A non-bankruptcy ‘workout’ refers to a formal process whereby a debtor’s debt is mutually negotiated with creditors without a bankruptcy filing. A bankruptcy workout may involve one of two components, or both:
- When an extension is granted, this means that a debtor is given more time to make payments on their debts.
- Unlike an extension, where a debtor will still plan to pay their debts in full but over an extended period of time, a composition is an agreement between a debtor and a creditor whereby the creditor forgives a portion of the debts and agrees to the debtor making only partial repayment.
The Advantages and Disadvantages of a Non-bankruptcy Workout
One of the biggest advantages of pursuing a non-bankruptcy workout instead of filing for bankruptcy is that a debtor can avoid the stigma that’s often associated with filing for bankruptcy. Another advantage is that the amount of debt that’s discharged can be even more significant than is the amount of debt that’s discharged in a bankruptcy filing, which means that a debtor may be able to achieve the same result that they would get by filing for bankruptcy, yet with fewer consequences.
However, a non-bankruptcy workout may not be a perfect solution. One of the downsides of a workout is that any terms agreed to by the creditor are voluntary, which means that you are at the mercy of the creditor. For this reason, it is strongly recommended that you are represented by a skilled bankruptcy and debt relief attorney who can negotiate on your behalf.
Call Our West Palm Beach Debt Defense Attorneys Today
If you are facing large amounts of debt and want to learn more about your options, call the law office of Bruce S. Rosenwater & Associates, P.A. today. We can help you to understand the drawbacks and benefits of filing for bankruptcy vs. pursuing a non-bankruptcy workout, and will advocate for you every step of the way. Reach us today online or by phone to learn more.