Bankruptcy Doesn’t Have to Be Your Only Way Out
Oftentimes when someone is struggling with debt, they tend to think bankruptcy is the only way out. At Tayne Law Group, we know bankruptcy isn’t the right path for everyone and have designed our debt relief program to be a viable alternative to bankruptcy.
Our process can help simplify your debt situation and get you back on the road to financial freedom.
What Is Bankruptcy?
Bankruptcy is a legal proceeding that makes it possible for consumers and businesses to gain some relief from their debts. There are two types of consumer bankruptcies that you may be considering:
- Chapter 7 bankruptcy: If you opt for this type of bankruptcy, you could have all of your debt wiped out. You would have to qualify for a chapter 7 bankruptcy through the means test and not everyone qualifies for bankruptcy especially if you make too much money or have assets that can be sold to satisfy the debts you owe to your creditors.
- Chapter 13 bankruptcy: This option allows your attorney to offer a plan through the court to repay your debts over three to five years. Depending on the agreement, you may end up paying off some or all of the debt but you could end up paying the debts in full plus fees to the bankruptcy attorney and trustee in a chapter 13 bankruptcy.
Chapter 13 bankruptcy is generally a better option because it affects your credit score for less time (seven years vs. 10 years), and it may allow you to keep some or all of your assets.
While bankruptcy can create a clean slate in some ways, not all debts can be included in a bankruptcy — some examples include court-ordered child support and alimony and most student loans. It can also stay on your credit report for up to 10 years, making it difficult for you to get approved for a mortgage, car loan, credit card, and other forms of credit in the future.
Bankruptcy can also potentially interfere with your ability to get hired for certain jobs, obtain certain licenses as well as your eligibility for some forms of insurance.
Debt Relief vs. Bankruptcy
Bankruptcy can relieve individuals of unsecured debts, stop foreclosure proceedings, and put a halt to debt collection activity. But those benefits come at a steep price.
Fortunately, depending on your situation, there may be other options available to you that could be a better option for you:
- Debt consolidation: If you’re still making your payments on time, consolidating your debt with a balance transfer credit card or personal loan may be what you need. A balance transfer credit card can give you an introductory 0% APR promotion, which can allow you to pay down your debt interest-free for a period. They do, however, require good or excellent credit to get approved. In contrast, personal loans can provide a set repayment schedule, which isn’t available with credit cards. It’s also typically easier to get a personal loan than a balance transfer card.
- Credit counseling: If you’re still making your payments on time or just starting to get behind, working with a nonprofit credit counseling agency may be the right move, especially if your credit score isn’t in great shape. Credit counseling agencies can negotiate with your lenders to get you a lower interest rate, monthly payment, or both. Then you’d make monthly payments to the agency, which will pay your creditors directly. This service typically comes with a modest monthly fee and your creditors would have to agree to participate. You will still pay the balance plus interest on your debts in this process.
- Debt settlement: If you’ve been behind on your monthly payments for a while, or you’re simply struggling to make the payments and not getting anywhere with the balances but you don’t want to deal with the challenges of bankruptcy, debt settlement can provide the debt relief you need. With this option, you’ll typically work with a debt settlement company or debt resolution law firm, making monthly payments into an account, which they’ll use to negotiate with your lenders on your behalf. The process, during which you stop making payments on your debts, can take anywhere between a few months and a few years and comes with a monthly fee. You’ll want to do your homework to find a reputable firm that has experience in the industry and can tailor a specific program to your needs. Be aware too of licensing requirements and limitations on what creditors they can work with and what happens if you’re sued by a creditor. This is why it makes sense to work with a financial law firm who can protect your financial rights.
Tayne Law Group’s debt relief services can provide an alternative for those considering bankruptcy. If you feel you could benefit from a simpler payment process and smaller monthly payments, you may want to consider looking into the debt relief services Tayne Law Group provides.
How Do I Know if I’m Right for Your Services?
Most people with unsecured debt and a willingness to resolve their debt are right for our help. There is a qualification process for debt help through the firm and that is done simply and easily over the phone with a debt help professional trained to assist you and get you qualified for free. If you’re struggling to keep up on your financial obligations, behind on payments, making late payments, making the minimum payment, or simply have no money left after all bills are paid, there’s an excellent chance that this debt relief service is right for you. Don’t wait, call today to find out the difference in having the Tayne Law Group team on your side.
Phone consultations are always 100% free and we’d be more than happy to assist you .