If you have reached a point financially where you do not have enough income to pay all the bills that come in, it is time to make some changes. While you can work to reduce any new bills you incur, you will still have old bills that need to be paid. It can be very stressful and you may debate filing for bankruptcy. While this is an option, most bankruptcy attorneys will advise some type of debt relief or consolidation before actually filing, and there is good reason for this. Depending on which bankruptcy chapter you file, you could end up losing a lot of your belongings. It will also affect your credit report for many years. However, if your lawyer can help get things back under control, you will not need to file at all. Here are just a few ways having legal representation will help when you have gotten in a financial bind.
Negotiate with Creditors
One thing a lawyer will do is to contact each of your creditors and explain the situation. This is giving the people you owe money a chance to offer you different terms on repaying the loan. They may also be willing to take off some of the late fees or remove some interest. While you may be able to do this by yourself, having a lawyer do it shows the creditor that you may be considering bankruptcy and they will not be able to collect all that you owe anyway. Taking off fees and interest and offering you lower payments each month may be enough for you to regain your ability to pay everything.
Debt consolidation can be a tricky undertaking. A debt relief attorney will know the best way to handle your situation and who to go to for the loan. Yes, it will involve another loan. However, this loan is used to pay off the other creditors. By reducing the number of different accounts you have to pay each month, you will be saving on interest and other fees. In addition, the monthly payment amount will be figured so that it is something you can afford.
While sometimes a bankruptcy is the only way to have debt relief, it is best if you talk with someone who understands the entire process. If you can work out a reasonable payment plan for all your creditors, you will save your belongings and your credit rating. This will make things easier for your future financially. Contact a professional like Dennis Lee Burman Attorney at Law to learn more.