When your finances have overwhelmed you and you simply can no longer keep up and you’ve got creditors breathing down your neck demanding money, you may want to consider looking in to some form of debt relief. This can help pull you out from under a financial disaster, stop the harassment from creditors, and set you back on the right track, whether it’s consolidating your debt and making a single payment monthly, or filing for bankruptcy and eliminating most of your debt entirely. Whichever you choose, here is a bit of general information about debt relief that you may find useful.
If you opt to use bankruptcy as your form of debt relief, there are different types you can file depending on your situation. Filing chapter 7 bankruptcy is the easiest way to give yourself a fresh start, as it eliminates most debts that you may owe, although there are a handful of exceptions. It is possible that you’ll have to part with some assets, but in many cases you’ll be able to retain things such as your vehicle and your home, as long as you are not behind in any payments on them. A serious downside to having to file this way is that it will remain visible on your credit report for as many as ten years, which can hinder your ability to get loans or credit cards. However, it can also be better than continuing to drown in debt and be harassed by those you owe money to.
There is also chapter 13 bankruptcy which involves making repayment plans in order to pay back monies owed to debtors, though you may not necessarily have to pay back the entire amount. A bankruptcy attorney will help structure a payment plan for you and help to eliminate at least some of your debt. Then a payment schedule will be set and you’ll be expected to follow through with it. This is a good option for those who want to show good faith in repaying as much as they possibly can. This form of bankruptcy will remain on your credit report for about seven years, and like the above, can cause some hindrances when it comes to acquiring new loans or lines of credit.
There is also the option of not filing for bankruptcy, but instead creating a consolidation plan where you will make one monthly payment to a single institution rather than several that are spread out between your creditors. This is a great way to avoid bankruptcy if it’s at all possible, and a far easier way to pay your debt without going broke in the process. To decide which option is the best for you, consult with a skilled bankruptcy attorney.
Are you in need of debt relief in Milwaukee, WI? Contact Credit Solutions, SC to find out ways in which they can assist you. To know more about their services, visit them online!
