Debt Relief Solutions

These days, there are ways you can get relief without having to file for bankruptcy. Plus, when you file for bankruptcy, it can stay on your credit report for up to 10 years and it generates a public record against you.

• Credit Counseling: Consumer Credit Counseling (CCC) companies are organizations that operate nonprofit financial counseling programs. Typically they will charge a fee for their services and they attempt to work with your creditors in order to reduce your interest rates and your minimum monthly payments.
• Bankruptcy: It is not as time-consuming as it once was. However, it is more complex because of the laws signed into effect in 2005. To prevent paying an exorbitant amount in legal fees, make sure you work with companies like Bankruptcy Attorney Nation. With chapter 7 you are able to completely eliminate unsecured debt. Chapter 13 is the best approach for stopping a foreclosure. Contact us for more information.
• Unsecured Debt Consolidation: This involves the replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. Unfortunately the credit markets have tightened in recent months, so if your FICO credit score is less than 660 it will be extremely difficult to impossible to qualify for a debt consolidation loan. Even if you do qualify, the interest rates for these loans are extremely high due to the lender taking on the additional risk of not having collateral to hold as security.
• Cash Out Refinance: This involves taking the equity from your home to consolidate your debts. The interest rate you pay for mortgage loans is typically tax-deductable, and you could end up saving in the long run. Just make sure you can afford the higher mortgage. It would probably be best to go through FHA or VA for your refinance. Conventional lenders have tightened their credit standards, and with the problems you're currently having, you probably won't qualify for a conventional loan. But, FHA, VA and other government-backed loans have much more lenient standards, so you could still be eligible for FHA cash out refinancing, VA cash out refinancing or refinancing through other government-backed options if you have enough equity in your home.
• Debt Settlement: This can be a cost-effective solution to getting out of debt. Often referred to as debt negotiation, debt settlement is an aggressive approach to debt reduction and it is best suited for individuals whose only other choice is filing for bankruptcy.

Bankruptcy law can be complicated and there are several considerations that must be taken into account in making the determination whether or not to file. If you are thinking about filing a bankruptcy, we encourage you to keep an open mind and make no decision about debt relief without seeking the advice and assistance of an experienced bankruptcy lawyer.