Debt relief occurs when individuals receive either partial or complete forgiveness of the debts they currently owe. The process of slowing or stopping the growth of an individual's debt is also considered debt relief. Many individuals today are in need of debt relief due to the paralyzing debt in which they find themselves. An individual's debt can quickly reach staggering proportions when one's income changes or assets are compromised due to job loss, illness, poor money management, or unwise investments. When most individuals consider debt relief, bankruptcy is what very likely comes to mind. However, there are other debt relief options in addition to bankruptcy.
Debt consolidation and debt settlement are two favorable debt relief options that individuals may wish to consider. Individuals that are in need of debt relief should contact debt relief attorneys for expert legal guidance and counsel.
Debt Relief Options
Debt consolidation is a debt relief program that allows individuals to take out a secure loan to pay off their unsecured debt, such as credit card debt. By doing so, individuals may enjoy lower monthly payments and a longer repayment term. To obtain a consolidated secure loan, some type of collateral is required. Debt consolidation may be an excellent option for those individuals with excessive credit card debt who are unable to make even minimum monthly payments on their debt.
For individuals that cannot afford the monthly payments of debt consolidation, debt settlement programs are available. Debt settlement is the process by which a neutral third party negotiates with the individual's creditors on their behalf to obtain a mutually acceptable debt settlement agreement. The neutral third party that assists with negotiations, such as debt relief lawyers, will be responsible for dealing with the individual's creditors as well as disbursing monthly payments to the individual's creditors. With debt settlement, individuals may reduce the total debt they owe, lower their interest rates, and enjoy a longer repayment term.
If debt consolidation and debt settlement are not viable debt relief options, bankruptcy may be an individual's only choice. Individuals and businesses may file Chapter 7, Chapter 13, or Chapter 11 bankruptcy petitions.
How an Attorney Can Help
Retaining the services of experienced attorneys at debt relief law firms is one of the first steps individuals should take. These attorneys can deal with harassing creditors and relieve individuals of the stress that the constant calls and letters from creditors bring. Lawyers with debt relief law firms can help individuals navigate the sometimes complex processes of bankruptcy, credit card debt relief, foreclosure, and debt consolidation.
Each of these processes can have serious consequences for the individual; therefore, those in debt need to be aware of how these processes can both positively and negatively affect their lives. Debt relief lawyers can be of the utmost assistance every step of the way.