Non-bankruptcy options include:
Credit Counseling (advertised on TV) - this process has resulted in the IRS shutting down many
of these fraudulent agencies who were stealing your money. Their basic scheme was to charge you exorbitant amounts of money
to send tiny payments to your creditors. This offered you zero legal protection and often just left you owing more than you
started with plus all the wasted money paid to the credit counselor. They also cannot assist with many creditors.
Home
Equity Loan - danger, if you miss your payments they can take your home. Most of your creditors cannot take your home if you
do not pay them, but if you consolidate your bills into a home equity loan, your home is the collateral and can be repossessed for
non-payment.
Borrow more money - if you are lucky enough to get a very low interest rate loan with payments you can afford, and
you are disciplined enough not to go out and charge up all your credit cards that you pay off with this loan, then this might work.
However most people who try this end up in even more debt, and some of that debt might be non-dischargeable if a bankruptcy is ultimately
required.
Settle with creditors - sounds too good to be true, and it usually is. They send you a letter saying they will
take less than what you owe on your debt. You quickly pay them off and think you are done. Later you receive a 1099 from
them claiming you made income of the amount of debt you did not pay and now the IRS wants taxes on your "income." The IRS does
not go away as easily as the original creditors. Debt discharged in bankruptcy is not taxable, debt "settled" is taxable.
Just
don't pay - if bankruptcy is not an option for you (morally and/or legally) you may be forced to just not pay your debts and see what
happens. Typically the creditor has a right to sue you within 4 years of your last payment or other action on the account.
If they get a judgment and if you own non-exempt property (as defined by your state law, not by bankruptcy law) at any time the creditor
can use that judgment to seize that property. In Texas non-exempt property includes cash and money in the bank, so it is possible
for them to seize your paycheck as soon as you deposit it or cash it. A judgment will also remain as a negative on your credit
report for up to 10 years.
To find out more, please call or email us to schedule a free consultation to see if you qualify.
By Act of Congress and Signature of the President:
We are a Debt Relief Agency. We help people file for bankruptcy.
Please realize the information contained on this web site should not be construed as legal advice nor does it create an attorney-client relationship between us. It is simply here as a means for me to provide you some basic information for you to use when deciding on whether or not you need to hire an attorney. Because each case is different, it would be impossible for us to provide legal advice on a web site.
Gary Cunha, P.C., Attorney and Counselor at Law
100 N. 6th #604, Waco, TX 76701 254-752-4279
for Debtors:
for Creditors:
for all:
