With the unemployment rate at its highest level in two decades, Americans are finding it difficult to keep up with their bills while being able to put food on their families’ tables. Creditors know this, yet continue to stay on the offensive with harassing calls, lawsuits, judgments, wage garnishments, liens and foreclosures. The majority of Americans believe their only option is to pay what they are told, have money taken from their bank accounts, and relinquish their wages or even their homes, then assuming their only option is to file for Bankruptcy.
“Big mistake,” says Gennady Litvin, lead counsel at Litvin Law Firm, P.C., a law firm in Brooklyn. All consumers should know that they have a way out. Bankruptcy is not always the optimal solution for many people. For instance, if the consumer owns a home, in many instances, that home will be liquidated and taken away in bankruptcy proceedings. Also, if there is a business that is owned by the consumer, all the assets of that business may be liquidated as well. Furthermore, bankruptcy will leave a stigma on your credit report for over seven years, making it extremely difficult to rebuild credit after filing.
“Filing for Bankruptcy is a great thing for someone that has no other solution, but most of the time another way is possible,” says Mr. Litvin. A consumer’s debt may be negotiated and settled for pennies on the dollar. Creditors are more willing to settle the debts that are owed to them to scrub their balance sheets of uncollectible accounts.
However, settling with creditors is neither a quick nor easy process. Many creditors are filing suit against their debtors, only to expect no answer or appearance to be made. If the lawsuit goes unanswered, it is possible to have judgment entered against the debtor, which will mean possible liens and garnishments.
“In answering our clients’ lawsuits, we are finding that creditors are a lot more willing to accept favorable terms during the negotiation process,” admits Mr. Litvin. Having the right and experienced consumer debt representation is crucial and important if the debtor is going to try avoiding the filing of bankruptcy. “We find that people who want to file for bankruptcy just don’t know they have other options available to them. Other
bankruptcy attorneys don’t offer them other options,” says Mr. Litvin. Bankruptcy is a good tool when a home is in danger of being auctioned off, there is no source of stable income or there are no possible means for the debtor to pay off the balance even after negotiations and settlements are made for pennies on the dollar.
Homeowners face an even greater danger when they do not answer foreclosure actions that are being brought against them. Most foreclosure actions go unanswered. This is exactly why so many homes are auctioned off every day. “Homeowners just don’t know what to do and throw out the court documents,” says Attorney Litvin. “They think that if they can’t pay, they can’t do anything else,” he adds. Defending against a foreclosure will allow the homeowner to collect money, change their financial situation and/or apply for a loan modification. In many cases a home can be saved from being sold at auction with the terms of the loan being modified during foreclosure proceedings. However, if a sale date has already been scheduled, a bankruptcy will stop the sale until the bankruptcy is finalized. This is a great reason to file bankruptcy for the client.
The Litvin Law Firm, P.C. was founded in December 2008, by Gennady Litvin. Mr. Litvin graduated Pace University with a Bachelor's Degree in Business Economics, and went on to pursue his Juris Doctorate at the University of Miami School of Law, where he was a proud member of the esteemed Business Law Review. Mr. Litvin was admitted into the Florida State Bar in 2008, the New York State Bar in 2009, and the United States District Court for the Eastern District of New York in 2009. Mr. Litvin is a member of the Dade County Bar Association, the American Bar Association, and the New York State Bar Association. His experience advising on and assisting with bankruptcy alternatives, foreclosure defense, and using the approach that bankruptcy is only a last resort has granted him an invaluable reputation in New York and Florida. Mr. Litvin has also strategically partnered up with an attorney licensed as a Certified Public Accountant to assist in the drafting and filing of bankruptcy petitions and performing negotiations and settlements for consumers that have tax debt.
The Litvin Law Firm, P.C. has locations in New York, New Jersey and Florida for the convenience of their clients. Call for your free consultation today at (877) 829-4104 or visit us at www.LitvinLaw.com.
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