Our law firm has helped tens of thousands of clients address unsecured debt and get a financial fresh start. Our experience has taught us that there is no single strategy that is right for every account.
For some accounts, negotiating a resolution can provide substantial financial benefits— like a reduced balance and interest free payments. For others, limitations, enforceability issues, available defenses, or litigation risk may make a different strategy more appropriate.
Our representation allows us to pursue the strategy that makes the most sense for each account. We may negotiate a resolution, rely on limitations or other enforceability issues, or defend you if an eligible creditor files a lawsuit.
Our goal is to protect your legal interests while helping you address your debt as effectively as possible. We will advise you as circumstances develop, and you will always retain the authority to approve or reject any settlement requiring your consent.
Other options may also be available. Although we do not provide those services, we can explain those alternatives when appropriate.
Credit counseling is another option for addressing unsecured debt. A credit counselor may help you establish a debt management plan under which you generally repay your debts over time, sometimes with reduced interest rates or fees. They do not typically reduce the balance owed or present legal challenges to the debt. These plans can take four years or longer to complete.
Credit counseling may be a good option if you have sufficient income to make the required monthly payments. It may be less suitable if you are already struggling to make payments or need other strategies for addressing your debts.
We do not provide credit counseling, but we can explain how it differs from the strategies available through our Firm. You can learn more from the Federal Trade Commission’s consumer guidance on credit counseling.
Debt settlement companies generally seek to negotiate with creditors to reduce the amount you owe or reduce your interest rates. Debt settlement companies do not provide legal representation or defend you in court if you are sued.
Consumers typically stop making payments to creditors, accumulate funds for settlements, and pay fees as debts are successfully settled. Debt settlement programs can take several years to complete, and creditors are not required to agree to a settlement.
Most states do not license debt settlement providers, and they are not fiduciaries with professional duties of loyalty or competency.
Our Firm may also negotiate reduced resolutions when appropriate, but settlement is only one of the legal strategies available through our representation. We evaluate enrolled accounts individually and may recommend other strategies based on the circumstances of each account.
Bankruptcy is another option for addressing debt. The two most common forms for consumers are Chapter 7 and Chapter 13.
Chapter 7 may allow qualifying consumers to eliminate many unsecured debts without a repayment plan. Eligibility depends on several factors, including income and the bankruptcy means test. A bankruptcy trustee may sell property that is not protected by applicable exemptions to pay creditors.
Chapter 13 generally allows consumers with regular income to keep their property while making payments under a court-approved repayment plan, usually lasting three to five years. Depending on the circumstances, the plan may require repayment of some or all amounts owed.
Bankruptcy is a federal court proceeding and becomes part of the public record. Debtors must disclose detailed financial information and generally attend a meeting with the bankruptcy trustee, where creditors have an opportunity to appear and ask questions. Bankruptcy can affect credit, although it can also provide substantial protections from collection activity and can discharge qualifying debts.
Chapter 7 eligibility can be complicated. Income below the applicable state median may simplify the means-test analysis, while consumers above the median may still qualify after applying the permitted income and expense calculations.
There are also restrictions on receiving another bankruptcy discharge after a prior bankruptcy. For example, a debtor generally cannot receive another Chapter 7 discharge if the debtor received a Chapter 7 or Chapter 11 discharge in a case filed within the previous eight years.
We do not provide bankruptcy representation, but we can explain how bankruptcy differs from the strategies available through our Firm. If you believe bankruptcy may be appropriate for you, we recommend consulting with a qualified bankruptcy attorney.
For additional information, visit the U.S. Courts Bankruptcy Basics.
A debt consolidation loan allows you to use a new loan to pay off multiple existing debts, leaving you with one monthly payment. It may be a good option if you qualify for a loan with an affordable payment and favorable interest rate.
Consolidation generally does not reduce the principal you owe or address legal defenses to the debt. You are replacing existing debts with a new debt, and depending on the interest rate, fees, and repayment term, you may ultimately pay more or less than you would under your existing accounts.
We do not provide consolidation loans or endorse any lender, but we can explain how consolidation differs from the strategies available through our Firm.
For some people, taking no affirmative action to resolve a debt may be a strategy. This may be particularly relevant if your income and assets are protected from collection under applicable law—sometimes referred to as being “judgment proof”—and you do not expect to need access to credit in the foreseeable future. In that situation, a creditor may obtain a judgment but have limited practical ability to collect it.
The consequences of a judgment vary significantly by state. Depending on applicable law and your circumstances, a creditor may be able to garnish wages, levy bank accounts, place liens on property, or use other collection remedies. State and federal laws also protect certain income, benefits, property, and assets from collection. A judgment may remain enforceable for many years, and your circumstances can change during that time.
We sometimes recommend this strategy for individual accounts when our analysis indicates that the risk of litigation or other adverse consequences is very low.
Taking no action does not mean ignoring a lawsuit. If you are sued, failing to respond can result in a default judgment and the loss of defenses you otherwise could have asserted. If you are considering this approach, you should understand the collection laws and exemptions that apply to your particular circumstances.
This site contains attorney advertising. It is not legal advice prepared for your unique situation. Statistics about clients, success rates and the number of years with an A+ rating with the Better Business Bureau include data while doing business exclusively as The Law firm of Higbee & Associates. Testimonials or reports of past results do not constitute a guarantee, warrant, or prediction regarding the outcome of your legal matter. Results portrayed are dependent on the fact of that case and the results may differ if based on different facts. Photos on the website, other than on the About page, are not of actual clients or attorneys. The firm’s lead attorney in the state is responsible for the advertising in that state. The lead attorney for each state can be found on the About page. The law firm only accepts clients or handles matters in states where it is licensed. Calls may be recorded for training and quality control purposes.
