If you’re thinking of declaring bankruptcy, look into all of your choices first. For some people, bankruptcy may be the best option, but it should only be used as a last resort. Let’s go over different bankruptcy possibilities so you don’t miss anything. Besides if you’re looking for alternatives because of the affordability, keep in mind bankruptcy lawyer in fort collins Colorado is one of the most affordable lawyers in the state.
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Debt Settlement
Debt settlement may be a possibility if your debt is extremely delinquent. Unlike a debt management plan, which requires you to pay off all of your debt over time, debt settlement requires creditors to forgive a portion of your obligation. The obvious benefit would be financial savings. The drawback is that your credit report will indicate that you paid less than the agreed-upon amount for the loan, which will likely damage your credit score. You should also consult a tax specialist because the forgiven amount will almost certainly be taxed as income. If this is something you’re interested in, you could try contacting directly with the creditors. Debt settlement companies although charge high fees and promise no guarantees. If there’s someone in your family who is responsible for huge debts on you and is causing you trouble you can check a family lawyer in fort collins to try negotiating things before.
Liquidating Assets
Do you own a car that you could sell for a profit? What about stocks or bonds that are worth a lot of money? You can pay off your obligations quickly and easily by selling or liquidating an asset. The most difficult aspect of this approach is letting go of whatever emotional attachment you may have to your belongings. However, when you understand how fantastic it feels to be debt-free, your sorrow may transform into delight!
Debt Management Plans & Credit/ Debt Counseling
You might be a good candidate for a debt management plan if you have a lot of credit card debt. With a debt management plan, you pay a credit counseling company regularly, and they pay your creditors on your behalf. A debt management plan often lowers credit card interest rates, waives late and over-limit fees, and freezes collection action, in addition to providing convenience. For some people, it might be an excellent tool for saving money and getting out of debt faster. For counseling sessions, you can choose a fort collins lawyer for a free consultation on the topic.
Debt Consolidation Loan
Some people choose to seek a debt consolidation loan that covers all of their debts to avoid the burden of paying many creditors. You could repay unsecured creditors with a home equity loan if you have equity in your home. Just keep in mind that because a home equity loan is secured by your home, if you don’t pay it back, you could be evicted.
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