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Exploring Your Debt Relief Options

When you are facing a significant level of personal debt, you might feel like you have no options. Do not think this way. You do have options, and these include far more productive strategies than simply doing nothing and allowing your home to go into foreclosure and your possessions to be repossessed.

Although filing for Chapter 7 or Chapter 13 bankruptcy can be an attractive option, remember that it is not the only option. Bankruptcy can have long-term negative impact on your credit score and in some cases, it is not worthwhile to go through the hassles that accompany bankruptcy. Below are a few alternative choices you can make to manage your debt without filing for bankruptcy. For help determining which option is best for you, speak with an experienced bankruptcy attorney.

Debt Settlement

One option to consider is debt settlement, which involves working with a private debt settlement company to negotiate a lump sum settlement with your creditors. With debt settlement, you pay the debt settlement company, rather than your creditors, until the company feels you have enough to pay your creditors and settle your debts.

Debt Consolidation

With debt consolidation, you actually take out a new loan to consolidate your debts. With this process, your debts are combined into one payment, rather than many, with a lower interest rate than you were previously paying.

Credit Counseling

In credit counseling, you work with a counselor to develop skills to manage your own debt and budget. With credit counseling, there is no negotiation of your debt to have some of it relieved. Rather, you learn how to tackle the debt on your own to relieve it.

Debt Management

Like credit counseling, debt management is more about creating and sticking to a budget plan than it is about negotiating your debt down. But it is not exactly the same. When you enroll in a debt management program, you create a plan that allows you to pay your principal in full while avoiding late fees, interest, and penalties.

Always Do Your Research

With any alternative to bankruptcy, there is a chance that you can be scammed by a disreputable company. By working with an attorney, you can reduce your chance of being scammed because your attorney knows how to determine a legitimate aid provider from a fraudulent one. But remember, this does not mean that you can simply outsource your debt relief to your attorney – do your own research about potential debt settlement, consolidation, management, and credit counseling companies to determine the right one to contact.

Work with an Experienced La Crosse Bankruptcy Attorney

When you are struggling with a substantial amount of personal debt, it can be easy to become discouraged and feel that bankruptcy is your only option. Although bankruptcy could be an option for you, remember that it is not your only option. There could be an alternate way for you to regain control of your finances and avoid filing for bankruptcy. To learn more about these options and explore what each would mean for you and your family, speak with one of the experienced debt and bankruptcy attorneys at Moen Sheehan Meyer, Ltd. during your free legal consultation with our firm.

Published July 27, 2016
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