Debt relief can reduce the burden of overwhelming debt, but also it is not for everyone else. If you are not making any progress on your debt, even after trying desperately, you might face overwhelming debt. Debt-relief programs are not suitable for everyone; therefore, it is important to understand what the consequences will be. You should get legal advice from an experienced debt collector attorney.
Everything you need to know about the debt collection relief program.
Consider bankruptcy or debt settlement when one of them is true:
- You have no idea about repaying the unsecured debts (Personal Loans, medical bills, credit cards) within five years, even if you perform intense measures to eliminate spending.
- The total unsecured debts equal half or more than your gross income.
On the other hand, if you want to repay all of your debts within five years, then you should prepare a do-it-yourself plan.
Several scammers in the debt relief industry are waiting eagerly to take money out of their pocket. Most people who join debt relief programs cannot complete them. You may end up with bigger debts than when you started.
A little link exists for entering a debt settlement plan if you cannot pay as agreed. It is recommended to contact a bankruptcy lawyer before you start making any debt relief strategy. Often the consultations are free. If you cannot qualify, move on to other options. The Chapter 7 liquidation of bankruptcy can erase credit card debt, medical debt, and personal loans. It can be done in 3-4 months if you qualify. Essential things you must know.
- It will not erase taxes owed, and the student loan is unlikely to be forgiven.
- It decimates your credit scores and will stay on your credit card for as long as ten years even if you restore your credit history. Your poor credit history will indeed affect your eligibility for car insurance. A bankruptcy lawyer will help you rebuild your credit sooner if your credit is not good.
- If you use a co-signer, the bankruptcy filing will make the co-singer solely responsible for the debt.
- The debt will pile up, and you can not file another chapter 7 bankruptcy for eight years.
- It may not be the correct option if you give up property or assets that you want or like. But certain types of property are exempted from bankruptcy.
