Many overwhelmed debtors seek alternatives to bankruptcy. They often believe, perhaps mistakenly, that bankruptcy will make it impossible for them to obtain credit in the future. They may have moral objections to using bankruptcy as a debt relief solution, believing that it means they are irresponsible or have failed in some fundamental way.
For people who believe that bankruptcy is too drastic a step to take, other forms of debt relief such as debt settlement, debt consolidation or debt counseling may look attractive.
- In a debt settlement scenario, a debtor agrees to repay a creditor a reduced total amount of money in exchange for a declaration by the creditor that the debt has been satisfied.
- Debt consolidation schemes relieve debtors of the burden of juggling payments, as they make payments to a third party. The third party, in turn, sends payments to the creditors. The total to be repaid may remain unchanged, but interest rates are often reduced dramatically.
- Debt counseling typically goes along with a debt consolidation arrangement. The extent and depth of debt counseling will naturally vary greatly from one provider to another. A debtor will typically pay the provider a monthly fee to cover the costs of debt counseling while repaying debts over time.
In some circumstances, one or more of these methods may enable a debtor to deal with overwhelming debt without filing bankruptcy. To be honest, however, at the Law Offices of Fisher & Frommer, PLLC, we have found that many of our clients first tried one or more of these methods — and simply lost time and money. The gap between income and assets on one side and debt on the other side of an equation is often too big for band-aid solutions to work in the long run.
Has the Time Come to Seriously Consider Bankruptcy? Contact Us to Discuss Truly Effective Debt Settlement · Lawyers in Orlando Offer Free Consultations
If you have tried debt settlement or debt consolidation without success, we urge you to discuss your financial situation with a bankruptcy lawyer. If you are facing foreclosure, lawsuits, liens, repossession or wage garnishment, one of these methods of debt relief may be too little, too late. A bankruptcy law and debt settlement attorney can explain how you can stop creditor harassment, stop foreclosure, stop wage garnishment and stop or prevent bank account levies as soon as possible.
The Law Offices of Fisher & Frommer, PLLC, welcomes your inquiry. Call us or e-mail us through this website to schedule a consultation with a debt settlement lawyer in Orlando, Lake Mary, Tampa or New York City.
