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Debtconsolidation might include a debt management repayment plan, credit card balance transfer, personal loan, or equity line of credit. The main strategy in any debtconsolidation strategy involves replacing one debt with another debt, usually with a lower interest rate or monthly payment.
You pay off multiple types of loans and credit card balances with your new consolidation loan, and you’re left with a single monthly payment to the new lender. Debtconsolidation can be a great tool to get out of debt faster – but only when it’s used correctly. Don’t jeopardize your home.
If you have a large amount of credit card debt or high medical costs that you can’t pay, Chapter 7 may allow you to start again. Chapter 7 is a disaster when it comes to secureddebt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt.
Protect secureddebt (home and car) from default to avoid a repossession or foreclosure. Negotiate unsecured debt (credit cards) if you are unable to keep up with payments. We work with consumers seeking debtconsolidation loans, or who may be considering options like debt negotiation or bankruptcy.
Bankruptcy does have some benefits, such as potentially putting a stop to wage garnishments or foreclosures. Usually during a Chapter 13 you only pay off part of your debts. Priority and secureddebts, such as taxes or auto loans, are paid in full. The Trustee’s office then pays various creditors.
Whether you’re facing foreclosure , repossession, wage garnishments, or relentless creditor harassment, our expertise in bankruptcy law can offer the protection and relief you’ve been seeking. SecuredDebt vs. Unsecured Debt Not all debts are treated equally in bankruptcy court.
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