${site.data.firmName}${SEMFirmNameAlt}
East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

Can an attorney help with pre-bankruptcy filing strategies?

Are there non-bankruptcy alternatives that an attorney may suggest to a struggling debtor?  One such option may be a debt management plan, or DMP. Debt negotiation and consolidation may help reduce the burden of monthly payments.

Although it may sound counterintuitive, a bankruptcy attorney can be an ideal resource for consumers interested in exploring debt consolidation. The reason is that an attorney understands that there is a spectrum of options available to debtors. In some cases, consolidation may only serve to prolong an individual’s debt for several more years until it becomes unmanageable. In that situation, a bankruptcy filing may actually be the more realistic solution. 

Keep in mind that a debt reorganization company may have a financial stake in advising against a bankruptcy filing. An attorney can provide sound counsel without the misleading advertising advanced by such companies. At the same time, an attorney may also be able to negotiate with a creditor for a more manageable solution to a debt issue. The leverage in those negotiations is that a creditor might not recover anything if a consumer files for bankruptcy. With that incentive, a creditor might be more willing to negotiate. Debt consolidation companies, in contrast, may require several years of payments before they open negotiations with creditors.

Generally speaking, a bankruptcy filing will discharge unsecured debt. To understand the categories of debt you might have, consult with a bankruptcy attorney. An attorney can dispel the myths and negative hype that may surround bankruptcy. A filing really can offer a fresh start.

Source: FindLaw, “What is a Debt Management Plan (DMP)?” copyright 2015, Thomson Reuters

No Comments

Leave a comment
Comment Information

PRACTICE AREA CATEGORIES

Tell Us About Your Case

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

PROFESSIONAL ASSOCIATIONS

  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

EAST ORANGE
OFFICE
7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top