Life can be a struggle. Whether you are an average consumer or a small business owner, it is possible to wind up facing a tidal wave of debt and feeling as if there is no way of avoiding an inevitable crash.
There are solutions available, but a lot of things can conspire to prevent the person in financial trouble from exploring all possible debt relief options. The baying of collectors demanding payment and the guilt trip you lay on yourself because of proper upbringing generates pressures that can prompt rash and, very likely, bad decisions.
The real story, in most cases, is that if you need help with debt you probably got into that situation through no fault of your own.
The significant question you face is what is the right way to get out from under? Should you pursue debt consolidation, debt settlement, or might bankruptcy be the best way to go? Very often, bankruptcy is the most viable option. Here’s why.
Debt consolidation is often pursued with the help of companies that promise simplicity. The attraction of lowered interest rates, late fees avoided and “one low monthly payment” can be great. But a lot of those companies are for-profit enterprises with little interest in your long-term welfare, so the end result is more long-term headaches.
Bankruptcy, whether in the form of Chapter 7 or Chapter 13, offers protections that consolidation can’t. In both forms, creditors are required to stop their collection efforts upon notification of the filing. They can’t take any other legal action, either. And once the court has approved terms, creditors must abide by the plan.
Our law firm offers a free initial consultation during which we look to evaluate your situation and clearly articulate what the options are and what the pros and cons of each may be for you. To learn more, we invite you to visit our North Texas consumer and business bankruptcy page. There is no obligation, just an opportunity to explore the alternatives.