Being burdened by surmounting debt is never an easy feat. We all have financial obligations that can quickly become overwhelming, and at times it may seem like there is no way to get out of debt. Even with the best of intentions to pay debt back, life changes can happen and make this difficult to accomplish. One option that is available to people is to seek resolution for the amount you owe through debt settlement. Leinart Law Firm provides quality insight that results in positive changes that you can see for yourself. All you have to do is contact us so we can get started. Learn more about debt relief options by contacting our Arlington, TX debt relief lawyer today.
About Debt Settlement
Settling debts entails negotiating with creditors to pay less than the amount owed. Debts that may qualify for settlement include retail cards, credit cards, signature loans, medical bills, auto loans after repossession, cash advance loans, and private student loans. Secured debts are types of debts that cannot be settled since a creditor can seize the assets instead. For instance, if you have a mortgage default, the lender will enforce a home foreclosure and sell it at auction. Unfortunately, even if this happens you could still owe the creditor money after assets have been seized. In which case this remaining balance may qualify for debt settlement. Credit cards and other unsecured debts are eligible for settlement, but the creditor may not be willing to abide by the settlement and instead could choose to file a lawsuit against you. As our knowledgeable debt relief attorney may explain, many creditors agree to a debt settlement option because then at least they are getting some payment compared to risking not getting any at all if the debtor is forced into bankruptcy.
Benefits Of Our Help
There are many benefits of debt settlement, such as saving money, reducing stress, stopping persistent creditor calls, protecting your bank account and paycheck, and avoiding debt collection lawsuits or judgements against you. A creditor may threaten to sue, but don’t let this intimidate you. However, it is still important to take action right away so that you are protecting your best interests. There could be consequences for continuing to ignore debts in hopes that they will go away. The time is now to get your debts handled so they no longer give you stress nor interfere with your financial health.
Leinart Law Firm
For those who are struggling with debts, rest assured you are not alone and there are dedicated professionals who are here to give you solutions. No one wants to deal with money problems, but it is best to handle it now so that it doesn’t continue to hinder your future. Our Arlington debt relief attorney is happy to schedule an appointment with you to learn more and then advise further. Contact the team at Leinart Law Firm at your next convenience to get started. We hope to hear from you.
Understanding Types Of Debt Relief Options
Debt can be overwhelming, but various debt relief options can help you regain control of your finances and an Arlington TX debt relief lawyer from Leinart Law Firm can be of assistance. Understanding these options is the first step towards finding a solution that works for you. Here are some of the most common types of debt relief options available.
Debt Consolidation
Debt consolidation involves combining multiple debts into a single loan with one monthly payment. This option can simplify your finances and often provides a lower interest rate than your existing debts. There are two main types of debt consolidation:
- Personal Loans: You can take out a personal loan to pay off your debts. This loan usually has a fixed interest rate and a set repayment term.
- Balance Transfer Credit Cards: Some credit cards offer low or zero interest rates for balance transfers. By transferring your balances to one card, you can save on interest and streamline your payments.
Debt Management Plans (DMPs)
A debt management plan is a structured repayment plan set up by a credit counseling agency. Here’s how it works:
- Credit Counseling: You work with a credit counselor who reviews your financial situation and helps create a manageable budget.
- Negotiation: The counselor negotiates with your creditors to reduce interest rates and waive fees.
- Single Payment: You make one monthly payment to the credit counseling agency, which then distributes the funds to your creditors.
DMPs can help you pay off your debt faster and with less interest, but they require a commitment to making regular payments over a set period.
Debt Settlement
Debt settlement involves negotiating with your creditors to pay a lump sum that is less than the total amount you owe. Here are the key points:
- Negotiation: You or a debt settlement company negotiates with your creditors to accept a reduced payment.
- Lump Sum Payment: Once an agreement is reached, you pay the agreed amount in a lump sum.
- Impact on Credit: Debt settlement can significantly impact your credit score since it typically involves stopping payments while negotiations are ongoing. However, it can also provide substantial debt relief.
Bankruptcy
Bankruptcy is a legal process that provides a fresh start for those unable to pay their debts. There are two main types of personal bankruptcy:
- Chapter 7 Bankruptcy: This involves liquidating non-exempt assets to pay off as much debt as possible. Remaining unsecured debts are discharged, giving you a fresh start.
- Chapter 13 Bankruptcy: This allows you to keep your assets and create a repayment plan to pay off your debts over three to five years. At the end of the plan, remaining unsecured debts may be discharged.
Bankruptcy has a significant impact on your credit score and should be considered a last resort after exploring other options.
Legal Guidance
Understanding the different types of debt relief options is crucial for finding the right solution for your financial situation. Whether you choose debt consolidation, a debt management plan, debt settlement, bankruptcy, credit counseling, or a DIY strategy, each option has its benefits and considerations. Evaluating your financial situation and considering these options can help you take control of your debt and work towards a more secure financial future.Â
Contact our firm today to speak with an Arlington TX debt relief lawyer from Leinart Law Firm for assistance.
