If you are deeply in debt, you may have no idea where to turn. Perhaps you have contemplated the idea of simply giving up and letting time run its course, or maybe you have floated the idea of bankruptcy. There’s no doubt about it, debt is overwhelming, stressful, and undesirable. Fortunately, there are certain options available that might be able to help you dig out from the hole you are in. If you think debt settlement might be the right direction for you, contact an attorney for further guidance.
Bankruptcy or Debt Settlement?
Before anything else, it is important for you to know that debt settlement is not a perfect system. If you have immense amounts of debt, some professionals will recommend that you file a Chapter 7 bankruptcy to give yourself a clean slate rather than making attempts at debt settlement. However, some people cannot afford to cope with the side effects of bankruptcy, and others only qualify for a Chapter 13 repayment plan. If you fall into the latter categories, debt settlement might be your solution. Again, only an experienced lawyer can look at your story and decide for sure.
The Basics of Debt Settlement
Debt settlement cannot apply to all of your debts; only unsecured debt like credit cards. Homes, cars, and other secured loans do not qualify for this structure. There are three main methods of debt settlement, each with their own benefits and drawbacks. The first option, working directly with a debt settlement company, means that you stop directly paying on your outstanding debts and instead pay a debt settlement company, which will negotiate settlement offers directly with the company you owe. This is a risky way to go, simply because you may end up paying the company more money than you would have had to pay if you negotiated with creditors on your own.
Finding an attorney with experience in debt settlement and bankruptcy is really the best choice, because that attorney can give you specific advice based on your types of debts, financial situation, and future goals.