Are mounting debts causing you sleepless nights? The prospect of bankruptcy can be intimidating, but there’s a lifeline you might not have considered – negotiating with your creditors.

We want to help people understand why bankruptcy isn’t the end of your financial future, but we also understand why people seek alternatives. For many, bankruptcy is an absolute last resort. It provides debt relief in most cases, but it also comes with significant consequences for your credit and finances in the short and long-term.

So, let’s consider negotiating your debt directly with creditors instead of seeking out relief through a California bankruptcy filing.

The Surprising Willingness of Creditors

It’s a common misconception that creditors expect to receive the full amount of your debt, plus interest, without exceptions. In reality, creditors are banking on only realizing a portion of the debt and interest owed to them by each creditor.

Creditors are often willing to negotiate with debtors for a variety of reasons:

Recouping Some of Their Losses: Creditors understand that if you file for bankruptcy, they may receive little to no amount of the remaining debt you owe. By negotiating with you, they have a chance to prevent this from happening.

Avoiding Costly Legal Proceedings: Taking a debtor to court is costly and time-consuming. Negotiating can save them time, money, and hassle.

Preserving Their Reputation: Creditors may also want to maintain a positive image and avoid being perceived as overly aggressive in debt collection. Nobody wants to borrow from a creditor that regularly preys on people and forces them into a courtroom to punish those whose circumstances have prevented them from paying.

Negotiation Can Lead to Significant Savings

When you decide to negotiate with your creditors, you’re taking a proactive step toward resolving your debt issues. You’re at this stage because you realized you won’t be able to fulfill the full remaining balance. Negotiations can offer savings, including:

• Lower interest rates
• Reduced monthly payments
• Lump-sum settlements

Each of these options provide either partial or total relief from the debt you owe, allowing you to move on with your life.

Come Up With a Strategy Before You Negotiate

Negotiations offer you a lifeline, but it’s imperative to have a plan before you reach out to creditors. A strategic approach with the assistance of an experienced attorney will protect you from getting pushed around by experienced negotiators on the other side.

At Hedtke Law Group, we assist the people of Moreno Valley, California get out of debt through bankruptcy, debt negotiation, and other means. Contact our firm to strategize alternative debt solutions.