Is Bankruptcy a Form of Debt Relief?
When debt becomes too overwhelming, filing for bankruptcy may be the only way someone can get back on track financially. Though it may feel like a form of debt relief, it is just the beginning of a new, economically stable lifestyle and should be looked at only as a last resort. Other options, such as debt consolidation and settlement, can also help get you back on track financially but still require you to pay what you owe. Or at least a portion of it.
To determine if bankruptcy is the best option for you, speak with a bankruptcy attorney New Brighton at Ursulova Law Offices. We can help you with all the information you need to determine the best form of debt relief for your financial situation.
Bankruptcy and Debt Relief
Filing for bankruptcy has similar benefits to seeking debt relief; however, the two are significantly different. Differences between bankruptcy and debt relief may include the following:
- Debt collectors continue to call during debt relief, whereas in bankruptcy, they cannot legally continue to harass you.
- Bankruptcy wipes out the debt (Chapter 7) or develops an affordable repayment plan (Chapter 13). In contrast, credit relief develops a repayment plan that can sometimes be too high for your income and expenses.
- In bankruptcy, you have your attorney and the trustee on your side, whereas in debt relief, it is rare to have anyone on your side.
Are There Other Debt Relief Options?
New York residents finding they need assistance with getting out of debt may have more options besides heading to court to file for bankruptcy. Some alternative programs for filing for bankruptcy may include:
- Debt Management: Debt management, also known as credit counseling programs, help consumers identify better methods for budgeting, which can help get them out of debt promptly.
- Debt Consolidation Loan: A debt consolidation loan loans the consumer the money to pay off their debt, making it possible to consolidate everything they owe into one bill and one monthly payment.
- Debt Settlement Program: A debt settlement program allows the consumer to settle the total amount they owe for a debt for less than what is owed.
Speaking with a bankruptcy attorney can help determine which method is best for you and, if needed, can help with any debt settlement option, including communicating with creditors, negotiating settlements, etc.
What is the Best Option for Me?
Choosing between debt consolidation or relief and bankruptcy is a personal decision based on your current financial situation and future income possibilities. If you still have decent credit and can qualify for a new loan or credit card, debt consolidation might be the best option, especially if you qualify at a lower interest rate.
If your credit is deficient and qualifying for new lines of credit is impossible, bankruptcy may be your best option. Speak with your bankruptcy attorney to learn more about your options, how debt relief works, and how to determine which one is best for your financial situation.
How Can a Brighton Beach Bankruptcy Attorney Help Me?
A bankruptcy attorney can help determine which option is best for you and help get the process started. The sooner you have a consultation with an attorney, the sooner you can get started back on your new, financially healthy life. Most bankruptcy attorneys offer free consultations to learn more about your situation and present how they can help, including debt consolidation, debt management, and bankruptcy.
Benefits of working with a bankruptcy attorney may include:
- Stopping unwanted creditor harassment
- Helping reorganize your finance
- Helping you gain control of your spending
- Helping you create a budget
- Asserting your legal rights
- Negotiating with creditors
- Filing any necessary paperwork
If you need assistance with debt relief or bankruptcy, it is best to seek legal help from an attorney with extensive knowledge of NY debt relief. At Ursulova Law Offices, we understand the need for compassionate, knowledgeable, and experienced bankruptcy attorneys ready to help you. Call our office today and learn more about how we can help you with your debt relief needs.
