Consumers with excessive debt need a clear opportunity for debt relief, and among the top of those opportunities are: loan modifications, settlements and bankruptcy; with which an attorney can help. A visit to a debt relief law firm is the first step.
Consider a Loan Modification
An attorney may request a mortgage loan modification due to the predatory lending terms of these. A modification of the terms could also make the loan more affordable.
The attorney negotiates terms with the lender to get the consumer a better deal. This in turn could reduce their payments and prevent foreclosure or it could also present the consumer with a refinance option.
Negotiating with Creditors for Settlement Offers
Charged off accounts give consumers negative listings on their credit history and they also indicate that collection agencies own the account now. Collection agencies increase the total balance and add new finance charges.
An attorney could negotiate with these agencies or the original creditor by helping the consumer get a settlement offer meaning a reduced balance of up to fifty percent. They could also set up a short-term payment plan.
Is Bankruptcy the Right Choice?
Consumers choose one of two bankruptcy chapters primarily. Chapter 13 is a new repayment plan which allows the consumer to pay monthly payments, each divided and distributed to several creditors. It takes up to five years to complete. The consumer can’t open new accounts until the case is discharged by the court, and they must have an income that is more than the state or county median to qualify.
Chapter 7 offers a liquidation of certain assets and properties, which the court sells to generate funds to settle the debts, and an adviser or trustee sends these payments to the creditors. They also manage all exempted values. It takes up to six months to complete.
Consumers can evaluate many debt relief options to determine which meets their needs most appropriately. An attorney could help them with these strategies. Those who need assistance should contact a debt relief law firm directly or visit Chriscarouthers.com today.
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