Posted on: 28 April 2020
When is the last time you added up all your debt? If you are like many people who are stuck in debt, you might never do this, as you probably do not want to know how much you owe. If you are in this position, you could benefit from seeking help through a debt relief lawyer. A debt relief lawyer knows the methods you can use to find relief for debt and will walk you through the process. When you meet with a lawyer for this purpose, he or she may explain the following two methods you could use to find relief from your debt load.
Option number one is debt settlement. Debt settlement is a plan you can do yourself if you wish, but it is more advantageous to hire a lawyer to assist you with it. A debt settlement plan lets you settle your debt for a lower amount than what you owe. You might be able to work out an arrangement to pay anywhere from 50% to 70% of what you owe.
To use this plan, your lawyer would have to contact all your creditors and ask for a settlement option. Some creditors are willing to settle for lower amounts, such as 20% to 30%, while others may not budge under 70%. It just depends on the creditor.
After making arrangements with all your creditors, you must pay the settlement amount. You can pay this in the form of a lump-sum payment, or you might be able to spread it out through a payment plan.
Using bankruptcy is the second option your lawyer might suggest. If you qualify for Chapter 7, you can get through your case without repaying a lot of the debts you owe. If you must use Chapter 13, you may receive a discharge on some debts, but you will have to repay most of them in full. Bankruptcy is a great choice if you want to get rid of debts faster, and if you do not mind the consequences it has on your credit. It may be worse on your credit than debt settlement, but this depends on the case.
How do you know which option is best for your situation? You can review the options yourself and choose, or you can ask an expert in debt relief. Find a debt relief lawyer today to get the answers you need to make a wise decision.Share