Debt Management Plan – When to Look at Bankruptcy
Getting into debt is a lot easier than working on getting out of it. There are several ways to get out of debt, including working on a tight budget yourself, signing up for a debt management program, or other budget planning programs. However, sometimes the debt is severe enough to where a debt management plan can take many years to pay everything off. If you are in serious debt, speak with a Brooklyn bankruptcy lawyer at Ursulova Law Offices to discuss your options and determine if it might be time to look into filing bankruptcy.
What Is a New York Debt Management Plan?
New York’s Department of Financial Services licenses budget planners to help those in debt pay off any unsecured debt in a more streamlined and efficient manner. Essentially, the credit counselors or budget planners call your creditors to set up a single payment plan for all your debt. The New York Debt Management Plan negotiates lower interest and lower fees with your creditors, then, based on your single monthly payment, distributes the money to your creditors.
With all of your debt consolidated into one debt management plan, you can work on paying off your debt at a lower interest and with lower fees than you would if you tried to pay all your debt off on your own.
What Type of Debt Does It Cover?
The New York Debt Management Plan does not work for all types of debt. These plans are designed to help those with credit card debt and medical bills. Those with payday loans and secured debt, such as an auto loan, will not benefit from a debt management plan.
Is It Right for Me?
If you are looking for a more practical method to pay off your debt, a New York Debt Management Plan might be the best option for you. Before making the final decision about entering a New York Debt Management plan, determine what the fees are (initial sign up and monthly) and determine if that will save you money compared to paying off the debt on your own. Then, consider the options and if you are prepared to enter a long-term debt management plan.
The best way to determine if a Brooklyn debt settlement or management plan is the best option for you is to speak with a bankruptcy attorney Brooklyn to discuss your options and learn more about the debt management plan process.
Is Bankruptcy a Better Option?
In some cases, hiring Brooklyn bankruptcy attorneys is the best option. Chapter 7 can erase various debts and is a quick, efficient way to eliminate credit card debt and unsecured debts. Like a debt management plan, filing for bankruptcy stops any collection attempts against you for your debt. However, with Chapter 7 bankruptcy, you do not have to pay these debts back.
How Brooklyn Bankruptcy Lawyers Can Help You Create a Plan
Those facing financial troubles can find relief from the stress by speaking with bankruptcy attorneys Brooklyn. The team at Ursulova Law Offices can help you resolve your financial problems by developing a plan to reduce your debt and stop those harassing debt collectors. In addition, an attorney can help you by speaking with creditors and creating a debt settlement plan with each one.
If bankruptcy is the best option for you, an attorney can help you file the paperwork, appear in court with you, and deal with the trustee.
Call to Schedule Your Consultation Today
Call Ursulova Law Offices at (718) 336-7000 today to schedule your consultation with one of our Brooklyn bankruptcy attorneys. We will discuss your financial citation during your consultation, go over your options, and determine if a debt management plan or bankruptcy is the best option for you.