Out-of-Bankruptcy Services

Individuals whose debts are primarily non-dischargeable, like student loan debts and tax debts, can still benefit from legal representation. We offer a full range of legal services to help you manage your bills and determine which route is best for you. If you need assistance with these kinds of debts, whether it’s deciding on a payment plan or understanding what you owe, we’re here to help.

Our Out-of-Bankruptcy services include:

Credit Counseling

Even if you do not file for bankruptcy, you are still entitled consumer credit protections under federal and local law. Some individuals, especially low-income individuals, may already be fully “collection-proof” under local law and need not file for bankruptcy to protect their assets.

Even if you are not “collection-proof,” we can help you put a stop to debt collection attempts by exercising your rights under the Fair Debt Collection Practices Act (FDCPA) and other federal and local statutes. These laws prohibit your creditors from contacting you upon receiving a Cease-and-Desist letter, unless they bring a formal action against you in a court of law.

We can also help you obtain new credit through Credit Report services. Your Credit Report may contain adverse information that can lower your Credit Score, making it more difficult to obtain new credit. For example, a bankruptcy discharge may appear on your Credit Report and negatively affect your Credit Score for as long as ten years. We can help you exercise your consumer credit rights under the Fair Credit Reporting Act (FCRA) to remove such adverse information after the statutory period has lapsed.

Payment Plan Negotiation

Your creditors may be willing to adjust your monthly payment to meet your needs without filing for bankruptcy under Chapter 13. We can help you reduce your monthly payments on your home mortgage, automobile loan, or student loans by negotiating a non-Chapter 13 Payment Plan. Debts can be adjusted either by extending the period over which to pay or by reducing the amount owed. Creditors will often prefer to accept an adjustment over risking you filing for bankruptcy, especially if you qualify to file under Chapter 7 and have little nonexempt property to liquidate. If you would like to learn more about a non-Chapter 13 Payment Plan or would like to speak to an attorney, please contact us to schedule a free Initial Consultation.

Lump Sum Settlements

Your creditors may also be willing to accept a lump sum settlement for less than the full amount you owe. Settling your debts with your creditors may be more affordable than you expect. You can trust our experience and legal expertise in negotiating a fair, affordable lump sum settlement.

Student Loan Debt Counseling

Interest on student loan debt is currently set to resume on September 1, 2023. Payments on student loan debt will resume on October 1, 2023. With student loan payments soon to resume, more borrowers are unsure what they owe and whether they can afford the upcoming payments. By law, student loan debt is not dischargeable through bankruptcy except in extreme circumstances. Often, clients with student loan debt mistakenly believe this means they cannot benefit from legal representation. Our firm offers a range of student debt counseling services so you can better understand what you owe, avoid piling interest, find a repayment plan that fits your budget, and pay off your loans. In addition to the services described above, we can help you enroll in an Income-Driven Repayment (IDR) Plan with monthly payments that meet your budget. As of June 30, 2023, several existing IDR Plans will be replaced by a single plan called the Saving on a Valuable Education (SAVE) Plan. The proposed changes include:

  • Raising the amount of income protected from payments from 150% of the Federal Poverty Guidelines ($21,870 for single borrowers) to 225% ($32,805 for single borrowers);

  • Not charging monthly interest apart from what is included in the monthly payment; and

  • Reducing the amount of discretionary or unprotected income (i.e., income earned in excess of $32,805) from 10% to 5%.

The SAVE Plan replaces the existing Pay As You Earn (PAYE) and Revised Pay As You Earn (REPAYE) Plans, while the Income-Based Repayment (IBR) and Income-Contingent Repayment (ICR) Plans remain available on a more restricted basis.

If you would like to learn more about Out-of-Bankruptcy Services or would like to speak to an attorney, please contact us to schedule a free Initial Consultation.