An alternative to bankruptcy that permits you to pay less than the amount that you owe, and being able to discharge the amount remaining, is debt settlement. Less than payment in full is often accepted by lenders and creditors because they feel that getting something is better for them than getting nothing. Communication from your creditors will cease, and you will feel a certain level of financial freedom as well.
Done correctly, it is a viable alternative producing great results, even though it does not discharge all your debts like bankruptcy does. Get in touch with bankruptcy attorney, Matthew C. Hines, if you are in a lot of debt, to learn just how he can help to negotiate for a lower principle with your lenders.
Matthew C. Hines, at the Law Offices of Matthew C. Hines knows very well just how simple it is to fall behind on payments due for one’s credit cards, and he also understands very well the client’s relief when they have a discharge or settlement of their credit card debt. Please look below to learn even more about handling your credit card debt.
With Chapter 7 or Chapter 13 Bankruptcy Wipe Out Credit Card Debt
A common reason people contemplate filing bankruptcy will typically be overwhelming debt. To begin with, even reasonable spending can lead to high balances very easily, because of the high interest rates that credit cards charge. And it is also very common that those individuals having a hard time with bills such as vehicle loans and mortgages, to spend their whole paycheck on those bills. This will often leave them to buy clothes, food, and other necessities using their credit cards.
People can get the relief they are seeking from both Chapter 7 and Chapter 13 bankruptcy. For those individuals with very high credit card debt, Chapter 7 is often the preferable choice since it totally discharges and eliminates the credit card debt, and after bankruptcy, gives a fresh start to the debtors. Some people however, might benefit more filing Chapter 13, or may not qualify for Chapter 7. In instances like these, over a three to five year period, debtors will pay back some or all of their debt, but at a rate which is affordable. At the repayment period conclusion, there is a discharge of any remaining credit card debt.
An Alternative To Bankruptcy-Credit Card Debt Settlement
For those individuals with severe credit card debt, filing for bankruptcy is not always the best solution. Negotiating a debt settlement plan, and seeking resolution with creditors can help by:
- Credit card debt reorganization
- Stopping harassment by creditors
- Elimination of late fees
It is vital that one understands that fashioning a settlement plan of credit card debt is not without some risks. As an example, if there has already been a turn-over to an independent collection agency of an account, your payments may not be reduced, and you are still going to be contacted about your debt consistently. This is why it is simply so important that you take the time to find out the best way to handle your debt experience from a debt relief attorney who knows how best to get the job done right!
Get in touch today to arrange a free consultation with the Law Offices of Matthew C. Hines.