Threatening Creditors with Bankruptcy
I
have many clients calling me who are genuinely interested
in filing bankruptcy but try to see if there are ways to
avoid it and view bankruptcy as a last resort which is
always my recommendation. In many cases, most clients would
not file if they could negotiate lower interest rates on
their credit cards or have their debts settled at a lower
amount. One of the strategies that I like to use is
threatening the creditors with bankruptcy, because let’s
face it if you file they get nothing so they are better off
making a deal with you. I find this strategy works 50
percent of the time, because many creditors think you are
bluffing and will just go ahead and tell you to file. The
funny part is they end up calling me many times after the
bankruptcy was filed asking for a settlement at which point
it’s too late. This strategy often works when you are
really on the border of filing for bankruptcy, and an
bankruptcy attorney who is experienced in dealing with
creditors negotiates on your behealf. I have used this
method with success in the past and so have clients that I
know. It’s not a sure fire method but definitely worth a
try in your battle against debt. Remember credit card
companies don’t play fair so use any and all information in
your arsenal of knowledge to get out of your situation!