Tennessee Lawyer Advises on Alternatives to Bankruptcy

Knoxville firm has solutions when filing for bankruptcy isn’t the right answer

Although filing for bankruptcy is oftentimes the most efficient way to eliminate debt, it is not the only option — and in some cases, it is not the best one.

At times, individuals are unable to file for bankruptcy without losing substantial assets. For others, the drawbacks of bankruptcy may outweigh the benefits. Likewise, many clients want to exhaust all possible remedies before pursuing bankruptcy.

William E. Maddox, Jr. LLC, Attorney at Law can help. I assist clients in their efforts to reduce their debts without filing for bankruptcy. No matter your situation, I will evaluate your specific financial circumstances to determine whether an alternative to bankruptcy is the best path for you. Based in Knoxville, I have served as a lawyer for clients throughout Tennessee for more than 20 years.

Beware of quick-fix schemes offered by debt relief companies

While there are many legitimate alternatives to bankruptcy, it is important to beware of fraudulent debt relief programs. There are many organizations whose business models were developed to prey on people struggling with debt. Many clients come to see me after being taken advantage of by debt consolidation scams. Don’t trust just anyone with your financial future.

Established attorney finds creative and lasting solutions to money difficulties

As an attorney, I will help you find a legitimate and effective way to relieve your debt. My first step is to put an end to creditor harassment. Once I notify your creditors that I represent you, they may not directly contact you, but must communicate with you through me. In addition, the Fair Debt Collection Practices Act (FDCPA) limits what professional debt collectors can say about you and your debt and to whom they can say it. If they have violated the law, I make sure they understand it and face the consequences of their illegal behavior.

I negotiate with my clients’ creditors to extend repayment plans and obtain settlement agreements that allow my clients to make lump-sum partial payments in satisfaction of their entire debts. If you have equity in your home, you may be able to open a home equity line of credit to address other types of debt. Home equity loans and credit lines not only allow debtors to consolidate their debts, but the terms of these arrangements often include low interest rates, and might provide yearly tax deductions.

If you do not own a home, or you do not qualify for a home equity loan, debt consolidation loans and low interest credit cards might lessen your interest rates and required monthly payment amounts.

Smart creditors often compromise on payment terms rather than force a debtor into bankruptcy, after which they likely would not receive full payment. Without a home or car to secure payment, settlement could be the best option for creditors as well. My firm may be able to work out an affordable repayment plan that extends the time you have to pay, reduces the amount you must pay each month, drops the interest rate, or includes some combination of those changes.

If you are underwater on your mortgage, a short sale might allow you to leave your property while discharging your mortgage obligations. If you want to stay in your home, we may be able to renegotiate the terms of your mortgage.

Set up a free consultation with a Knoxville debt relief lawyer to get started

To learn more about debt relief options other than bankruptcy, you can contact William E. Maddox, Jr. LLC, Attorney at Law at 865-293-4953 or toll free at 865-293-4953. You can also reach me online. Initial consultations are always free. My office is in Knoxville.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.