Get Debt Relief Today !
Let’s face it… we all owe money to someone. Sometimes this debt becomes unmanageable for whatever reason. There are options out there to help you with debt relief, and A Better Way can help you with all of them.
One common form of debt relief comes in the form of debt consolidation. This is where all your debt gets pooled together and you make one payment a month to whoever is managing the consolidation. Once the consolidator takes their fee, they disburse the rest of the monies to your creditors. This type of debt relief is very similar to the Chapter 13 bankruptcy process, but it lacks some of the benefits and protections of the bankruptcy court. With a debt consolidation, the creditors may continue to add interest, late fees, and finance charges to the accounts. Also, consolidators may only work with certain types of creditors. For example, you may owe credit cards and medical bills, but the consolidator will only manage debt relief for the credit cards. Lastly, because the automatic stay only applies to bankruptcy, there is no guarantee that a creditor will not get frustrated with the debt relief consolidation arrangement and file a lawsuit against you for the balance that you owe.
Debt negotiation can be an effective way of managing your debt. This form of debt relief is where you attempt to settle a debt with a creditor or their representative, usually for less than the total balance owed. In order to make these debt relief negotiations work, the amount you settle upon must usually be paid in one lump sum within a couple of weeks from the agreement. If one of the negotiated terms is not met, the agreement will be voided. Again, there is no federal protection from the bankruptcy court here to require the creditor to accept your terms.
It is not uncommon for debtors to be in a debt negotiation or have their accounts managed with a debt consolidator for a few years and then decide to file a bankruptcy. There are federal protections involved with a bankruptcy which will help give that fresh start.
If your debts have become troublesome, or you spend your nights tossing and turning trying to figure out how to manage your money, it is time to give a professional a call. We here at Southfield bankruptcy lawyer can assist you with your debts, no matter which road you choose. Let us show you the better way.
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