If you feel overwhelmed by debt, you may be considering options to release yourself from the burden. One of the most common ways to relieve your debts is to use bankruptcy, as a lawyer like a bankruptcy lawyer Meriden, CT from a law firm like CT Bankruptcy Attorneys, can explain. You do not have to file bankruptcy if you’re in debt, however. Here are your options for debt relief.
Attend Credit Counseling
Many people do not want to negotiate with creditors. If you are not sure about negotiation, you may want to visit a credit counseling agency. The credit counseling agency will help you repay your debts and fix your financial state. You can learn how to handle your debts. If you plan to file for bankruptcy, you will have to attend credit counseling before filing.
Discuss Debt Settlement
Debt settlement is not public like bankruptcy. In debt settlement, you settle your debts for less than what the debt is worth. To do this, you need to negotiate with your creditors. You pay a lump sum to rid yourself of your debt.
If you are not used to negotiating with creditors, you may want to discuss your options with a bankruptcy lawyer. He or she may be able to walk you through the process or aid you in negotiating with your creditors.
While you do not have to file for bankruptcy if you are in debt, it could be your best option. When thinking about bankruptcy, consider how it may benefit you. Do you foresee yourself paying off your debts in the next five years? Do your bills impact your ability to pay for living costs? If you cannot pay your debts off in the near future or cannot afford to live with the amount of debt you have, you may want to think about bankruptcy.
While bankruptcy hurts your credit and can cause you to need cosigners for rental properties, you can bounce back from a damaged credit score. The benefits of releasing your debt may be worth the credit score damage. Most people begin rebuilding their credit within the first year.
If you are overwhelmed by your debts, you may need to consider a way to settle. To find out whether bankruptcy is the right option, set up a consultation with a bankruptcy lawyer as soon as possible. He or she can provide you with a variety of debt relief options. If bankruptcy is right for you, your lawyer can represent you to ensure you meet all of your deadlines and requirements.