Alternatives To Bankruptcy
Are You Looking for a Way Out of Debt?
There are many debt remedies in addition to bankruptcy that can help you improve your financial condition. If you are having trouble keeping up with credit card payments or are behind on your mortgage, you may want to consider pursuing another form of relief. Rowdy Williams Law Firm can answer any questions you may have and help you decide on any of the following options:
Debt Settlement
One form of an alternative to bankruptcy is seeking what is known as a debt settlement. This is an agreement with you and your creditor to pay off the debt for less than what is actually owed. While this is useful for you in that you pay off less, it can actually have numerous benefits for the creditor; namely, it allows for them to be certain they will receive at least partial payment instead of losing it all in bankruptcy.
Debt Consolidation
The consolidation of debts allow for you to take out one loan with a much lower and fixed interest rate to pay off all of your other debts. You will then be able to worry about one singular debt instead of fretting about numerous different debts. This can be used to help lower overall payment, make it so that you are only responsible for making one payment per month and can help stop creditor harassment.
Loan Modification
This is similar to debt settlement except that it is aimed solely toward mortgage payment. By reaching an agreement with your creditor, you can help to lower your monthly payments, reduce the overall payment stemming from the interest, as well as possibly getting rid of any past due payments. This can lower how much you owe and make it possible for you to save your home from foreclosure.
Self Money Management
In some cases, the best alternative involves no other parties at all. By sitting down to look at your finances and penciling out a detailed budget – and then following it closely – you may be able to get control of your finances without the need for any drastic measures. Even partaking in counseling or utilizing other fiscal tools, you may be able to gain stability without the need to file for bankruptcy.
Beware of Some Credit Counseling Services
The Better Business Bureau has reported a spike in the number of Americans seeking assistance from credit counseling firms, but as the number of complaints filed has increased dramatically as well. Many credit counseling firms charge a small upfront fee in addition to monthly transactions, and you must be careful to not fall further behind on your bills. Even though a credit counseling service may have a promising success rate of negotiating reduced settlements, the ultimate decision will rest with your creditors. Beware of credit counseling services that guarantee success in reducing your debt, and always look into the qualifications and accreditations of any counseling service you are considering.
At Rowdy Williams Law Firm, you will receive attentive legal counsel that is personalized for your financial situation. The firm can not only help you make an educated decision regarding your finances and credit counseling, they can also provide vigorous representation when negotiating with creditors and lenders. Contact us today to learn more.
