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What are my debt relief options?

What are my debt relief options?

January 21, 2020 by Jeffrey Lohman

According to a May 2019 article in CNBC News, nearly 1 in 4 Americans are going into debt trying to pay for necessities, such as rent, utilities, and food. Another 12% revealed that medical bills formed the bulk of their debt. Whatever reason you find yourself burdened by debt, trying to work your way out of it can feel hopeless and overwhelming. But debt does not have to define the rest of your life. You do have options.

Assess the situation

Often, the biggest obstacle to overcoming financial hardship is failing to assess circumstances early. Because money issues are stressful, it’s not uncommon for people to avoid them. However, the first step in any crisis is to gain a full and accurate understanding of the landscape, and financial troubles are no different.

The moment you begin to see red flags, take control of the situation by assessing your finances, developing a budget, and making early contact with creditors to avoid getting deeper into debt. Often, creditors are willing to work with debtors who show the initiative to reach out at the earliest sign that they may have trouble with future payments.

Get help

If your financial problems are more complicated or significant than you can handle alone, you may benefit from a debt relief service. Licensed credit counselors can advise you on how to develop a plan for repaying creditors, how to manage your finances more successfully, and how to enroll in a debt management plan (DMP). Reputable debt settlement programs can help you negotiate a manageable settlement or lump sum that is less than the amount you owe.

Consolidate

Debt consolidation may help to reduce loan payments through a second mortgage or a home equity line of credit. However, you risk losing your home if you can’t make payments. Like other loans, consolidation loans will accrue interest and other fees, but they do provide some tax advantages.

File for Bankruptcy Protection

In some cases, filing for bankruptcy protection is the best course of action. A bankruptcy petition can discharge unsecured debt, such as credit card debts, personal loans, medical bills, as well as stop foreclosures, repossessions, wage and property garnishments, and will immediately stop harassing debt collectors, providing you with a refreshing new economic start. Although a bankruptcy filing could remain on your credit report from seven to ten years depending on the Chapter, in most cases the debts’ elimination and freeing of income actually improve a person’s credit rating. As part of our services, we analyze how credit would be affected, either positively or negatively, by a prospective bankruptcy case and provide you with an estimate of your post-bankruptcy projected credit rating. No one should have to be a slave to debt and the Bankruptcy Code envisions this refreshing new start for the honest, but unfortunate debtor.

Call the Law Offices of Jeffrey Lohman to discuss whether you would benefit from filing bankruptcy.

Call the Law Offices of Jeffrey Lohman to discuss whether you would benefit from filing bankruptcy.

The Law Offices of Jeffrey Lohman, P.C. is considered a debt relief agency pursuant to federal law. We are attorneys who help people file for bankruptcy relief under the Bankruptcy Code.

Filed Under: FAQs

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