When debt becomes overwhelming, knowing where to turn can be difficult. In an article for Ahwatukee Foothills News, Senior Attorney JoAnn Falgout broke down the key differences between two options for those experiencing severe financial hardships: debt settlement and bankruptcy.
JoAnn offered practical insight into the two approaches’ processes, pros and cons. Debt settlement may work for those who can make lump-sum payments and negotiate with creditors, she explained, but it comes with risks like failed negotiations, predatory settlement companies and unexpected legal fees. Meanwhile, bankruptcy can fully eliminate or restructure one’s debt, but it might require liquidating non-exempt assets.
Above all, JoAnn stressed that there is no one-size-fits-all solution to resolving severe debt, and the choice between debt settlement and bankruptcy is a case-by-case decision. Consulting with a bankruptcy attorney can provide clarity and help prevent costly mistakes in the long run.
With deep experience in bankruptcy, commercial and appellate law, JoAnn is a skilled negotiator, mediator and litigator who helps individuals and businesses navigate financial crises with confidence. She has successfully represented debtor and creditor clients in Chapter 7, 11 and 13 bankruptcy appeals, as well as in proceedings before the bankruptcy court.
Read the full Ahwatukee Foothills News article.