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  • Ownership of A Business While Filing For Bankruptcy

    Ownership of A Business While Filing For Bankruptcy

    Call: 888-297-6203

    So you are a business owner and are in need to file for bankruptcy. What will be your company’s plight in such a case?

    Firstly, you must understand that in most of the cases your company is a distinctly separate entity under the law, whether it is a corporation or an LLC. Imagine your company as its own legal representative, completely separate from yourself. Your company does not necessarily need to follow suit, simply because you have filed for bankruptcy. In fact, there might not be a need to have your company filed in case it is a small and closely held entity, as the trustee might not get anything from it to distribute to the creditors.

    However, there are some situations in which you might be required to have your company file for bankruptcy. Having your company file for bankruptcy might prove to be helpful in cases where the creditors are chasing the assets and the payroll taxes are owed by the company. In case of small companies, the owners are usually responsible for certain non-dischargeable (in bankruptcy) payroll taxes. Thus, it is sometimes better to file for bankruptcy to stop the creditors from getting a hold of your assets. After filing for bankruptcy, your tax claims will be given a priority over any other creditors.

    One more reason for this bankruptcy being a good idea is that it allows a quick shut down of the company and stops the creditors from making efforts to collect from you. Even though their efforts might not be targeted at you as the owner of the company, you will be likely facing troubles because of their attempts to get back their money. So, it will be easier to deal with only the trustee because of filing rather than dealing with a host of creditors.

    Your ownership of the company is important even if your company does not file for bankruptcy. It is an asset which will be accounted for while filing for a personal bankruptcy. A basic balance sheet of liabilities and assets is compiled to determine the value. Your interest in the company will also be utilized for your income calculation. The profit and loss statements of the company will prove to be very useful here. Thus, it will be necessary for you to be aware about the financial health of your company even if you are filing for bankruptcy individually.

    You can visit Recovery Law Group or call on 888-297-6203 to get best advice about your financial options from the best bankruptcy attorneys of Los Angeles & Dallas, TX.


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    • Are You Thinking of Filing for Bankruptcy? Here’s What You Can Expect?

      Are You Thinking of Filing for Bankruptcy? Here’s What You Can Expect?

      Call: 888-297-6203

      Since there is a lot of confusion surrounding the bankruptcy process, it is better if you are aware of what to expect when you file for a Chapter 7 or Chapter 13 bankruptcy. The best way to do that, say Los Angeles based bankruptcy law firm https://www.staging.recoverylawgroup.com/ is to hire experienced lawyers. In case, you are contemplating bankruptcy filing and haven’t yet hired a lawyer, you can call experienced bankruptcy attorneys at 888-297-6023 to discuss your case.

      The initial process in either chapter of bankruptcy is similar; beginning with a consultation with a lawyer. You need to discuss your income, household size, your assets, debts and your reason for a bankruptcy filing. Once the information is available to your lawyer and you have discussed your expectations from the bankruptcy, the attorney will discuss the advantages and disadvantages of both Chapter 7 and Chapter 13. After being aware of all the facts, you can come up with a plan as to how you will proceed with the bankruptcy.

      Once the bankruptcy chapter is decided, you are required to gather all essential documents required for filing of the bankruptcy petition. You can review the petition prepared by the attorney for its accuracy and sign it so that it can be filed in the bankruptcy court. After 1 week of the bankruptcy filing, you receive a letter from the bankruptcy trustee assigned to your case, which asks for specific financial documents supporting your bankruptcy petition. Beyond this, both chapters of personal bankruptcy differ from each other.

      Chapter 7 bankruptcy

      You are expected to have a phone interview with your bankruptcy trustee in this case, where the trustee asks about your bankruptcy petition and the supporting documents. Your attorney is not part of this conversation. 1 month after petition filing, you meet the trustee in-person at the Federal court house along with your attorney. Here you are asked a series of questions regarding previously discussed documents. Your creditors are also part of this meeting (341 hearing) and can object to your bankruptcy discharge. However, creditors rarely participate in the meeting.

      Any secured debts (mortgage, car loan) which you have can be reaffirmed if you wish to keep the asset. Reaffirming a debt means that you will be liable for your mortgage or car loan and need to continue making monthly payments on those loans, irrespective of the bankruptcy filing. If everything goes as per plan, you will receive your bankruptcy discharge within 120 days of the bankruptcy filing. Discharge of debts means you are not liable for any debts.

      Chapter 13 bankruptcy

      No telephone call from bankruptcy trustee precedes the personal meeting in this case. Here also a Meeting of Creditors takes place within 30 days of the bankruptcy filing and lasts around 5 minutes, where you are asked questions pertaining to the documents attached with your bankruptcy petition. Apart from this meeting, your 1st payment (as per your repayment plan) to the bankruptcy trustee is also due within 30 days of filing. The trustee distributes these payments to your creditors depending on the secured debts you decided to keep, your unsecured debts and your income. This repayment plan lasts for 60 months. The payments are calculated with the bankruptcy attorney and trustee and depend on your disposable income. If you continue making payments on time, you will get your bankruptcy discharge after you make your final payment.


        *Are you more than 60 days past due on your mortgage?

        *Do you own a home?

        Are you currently working?

        By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

      • Filing for Bankruptcy? Know What Constitutes an Asset in Your Bankruptcy Case?

        Call: 888-297-6203

        Bankruptcy is designed to get rid of huge amounts of debt in order to get you a fresh financial start. However, this can be unfair to the creditors if they are unable to receive anything in return. Thus, in case of Chapter 7, your non-exempt property is liquidated, and the proceeds distributed among your creditors; while in case of Chapter 13 bankruptcy, a repayment plan is devised based on your disposable income. While filing for bankruptcy, you are expected to list all your assets in the bankruptcy petition. This allows the bankruptcy trustee to find out which of them is exempted and which must become a part of your bankruptcy estate. Those assets which cannot be exempted through either state or federal exemptions, become part of your bankruptcy estate and are liquidated to pay the creditors.

        Any asset must be listed accurately in your bankruptcy petition along with why it is exempted if you wish to keep that asset, say lawyers of Dallas based bankruptcy law firm https://www.staging.recoverylawgroup.com/. however, the major point of concern is what will constitute your assets and which of them can be exempted.

        An asset is something which can be sold to pay off your debts. Some of the assets which are usually looked over include:

        • your life insurance policies,
        • any policy where you are the beneficiary,
        • accumulated vacation pays,
        • season tickets,
        • timeshares,
        • unpaid insurance claims,
        • class-action suits,
        • security deposits,
        • liquor license,
        • divorce settlement,
        • trademarks,
        • tax refunds

        Sometimes, people forget that they have co-signed a loan. Since the asset is not in their name and the payments are not being made by them, it is quite common to forget about the loan. However, if the asset has any equity and you neglect to mention the loan, you can be in a bad situation. Once there is any equity in an asset you had co-signed for, it becomes your asset. The omission could be fatal if the equity is immense. In case there is no equity in the asset, it is not an issue. If what you owe on your vehicle/house is more than what it is worth, i.e. there is no equity in the property, then it is no longer an asset. You don’t need to use any exemption on said property in such case.

        There is a huge confusion as to what can constitute an asset or not and what equity in the property is exempted. A bankruptcy lawyer can help you distinguish between assets and liabilities. it is vital that you disclose all the above-mentioned assets as even an accidental omission of any can have grave consequences on your bankruptcy petition. You can consult with experienced bankruptcy attorneys at 888-297-6023 to discuss the situation at hand.


          *Are you more than 60 days past due on your mortgage?

          *Do you own a home?

          Are you currently working?

          By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

        • Tips to Rebuild Credit Score After Bankruptcy

          Tips to Rebuild Credit Score After Bankruptcy

          Call: 888-297-6203

          Bankruptcy has earned a bad name because it causes a big dent to your credit report, which many people fear is irreparable. However, Dallas based bankruptcy law firm Recovery Law Group say, nothing can be further from the truth. Bankruptcy does have negative effects which make people vary of filing for bankruptcy despite struggling with debts. Bankruptcy appears on your credit report and stays for 7-10 years depending on which chapter of bankruptcy you have opted. This may alert prospective creditors of your financial situation. However, if you think you won’t get any credit for this duration, you are wrong. With a few simple steps, you can start building your credit score, eventually getting a good score in as less as 2-3 years after a bankruptcy discharge.

          • Opt for secured credit card

          Once you are through with your bankruptcy discharge, you will have the option of secured as well as unsecured credit cards. Prefer a secured card with a limited balance. You can use it to pay for essentials like utility etc. While choosing from the numerous options of credit cards available, look for those which have low-interest rate and annual fees. Generally secured credit cards provide you these options.

          • Pay your bills on time

          Paying due bills on time is an excellent way to improve your credit score. You need to make sure that not just credit card bills, but also other bills are also paid on time as any late payment will affect your credit report negatively.

          • Live within a stipulated budget

          People can change their habits. It is important that you learn from your past mistakes, let go of your bad habits and develop new ones that include designing a budget and living within it.

          • Apply for limited credit

          Remember that lots of credit cards and unlimited credit amount landed you with bankruptcy. Therefore, always limit your credit in order to avoid the vicious cycle of debt and bankruptcy. before applying for any new credit, ask yourself whether you need it or not. additionally, do proper research before taking any new credit.

          Rebuilding your credit score is not as difficult as predicted if you are determined to go through with it. Keeping your goals in mind, it is vital that you go in the right direction. Experienced bankruptcy lawyers at 888-297-6023 can help you with different aspects of bankruptcy as well as credit building initiatives.


            *Are you more than 60 days past due on your mortgage?

            *Do you own a home?

            Are you currently working?

            By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

          • Automatic Stay Stops Creditors in Their Tracks

            Automatic Stay Stops Creditors in Their Tracks

            Call: 888-297-6203

            When you have fallen behind on your dues, there is no way of preventing the threatening actions of creditors. You will end up facing harassing phone calls and threatening emails seeking legal action against you. Dallas based bankruptcy law firm Recovery Law Group, say that filing for bankruptcy can be the best way to not just get rid of this nuisance but also of a large amount of unsecured debts which are holding you back.

            Once you file for bankruptcy, the court orders the automatic stay order to be served to all the creditors listed in your bankruptcy papers. Once the creditors are served with the order, they cannot continue with the collection efforts. Violation of the automatic stay is a punishable offense and for a change, the creditors will be at the receiving end if they try to contact you.

            Know more about automatic stay benefits:

            It is the first order that is issued by the bankruptcy court when you file your bankruptcy petition. The automatic stay is immediately placed into effect and remains for the entire duration of your bankruptcy case. With automatic stay in place, you are assured that your secured and unsecured creditors cannot initiate any type of collection actions. This means that your property cannot be repossessed, foreclosed or your wages garnished.

            It is also important to realize that since criminal restitution, domestic support and certain property taxes are priority debts and therefore cannot be discharged in bankruptcy, the automatic stay cannot offer protection against them. This order is permanent for all debts which were included in bankruptcy and received a discharge through it. However, if a creditor gets a court order to lift the automatic stay, the protection won’t be accorded.

            Having a bankruptcy lawyer can make things easier for you. If you haven’t hired one, you can schedule an appointment with experienced bankruptcy lawyers to discuss your case by calling 888-297-6023.

          • Warning Signs That Suggest You Should Consider Filing for Bankruptcy

            Warning Signs That Suggest You Should Consider Filing for Bankruptcy

            Call: 888-297-6203

            For an individual or a business, filing for bankruptcy is probably a stigma that will ruin their credit history and personal name for a long time to come. However, if you could keep your emotions in check, Dallas based bankruptcy law firm Recovery Law Group, says, bankruptcy is probably the wisest decision one could make to take control of struggling finances. It is often difficult to be objective when it comes to the personal economy, therefore, here are a few warning signs that you should consult professionals for seeking advice regarding bankruptcy:

            1. You are finding it difficult to get out of debt

            Unable to pay debts may result in you borrowing money, which will further add to your debts. It is a never-ending vicious cycle which keeps on adding the interest rate. If you find the situation somewhat familiar, it is time for you to seek the guidance of a bankruptcy lawyer. Expert advice is available from experienced bankruptcy lawyers at 888-297-6023 regarding how to use bankruptcy to make a fresh financial start.

            1. Retirement funds are being reduced

            Many people think that using their retirement fund to get rid of debts is a way to avoid bankruptcy; well, they couldn’t be more wrong! Digging into your retirement funds puts your future in the dark while not exactly lifting your present from the darkness of debt. Bankruptcy lawyers will enlighten you to the fact that most unsecured debts get discharged during bankruptcy while your retirement accounts are exempted from being used to pay your creditors. Thus, you are harming your present and future by using retirement funds for fending off creditors unsuccessfully.

            1. A lawsuit is not far away

            If you are unable to pay your loans, creditors might be forced to file a lawsuit against you. With numerous problems, this is something that you cannot afford. Filing for bankruptcy will not only put a hold to such a lawsuit but also other collection actions like threatening phone calls, repossession, foreclosure, and wage garnishment.

            1. Your family is at risk

            Sometimes, creditors can go after other members of your family, like spouse or parents. If this is something that you have experienced, it is time to consult with lawyers about which chapter of bankruptcy would be ideal in your case.


              *Are you more than 60 days past due on your mortgage?

              *Do you own a home?

              Are you currently working?

              By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

            • Bankruptcy Exemptions in Texas

              Bankruptcy Exemptions in Texas

              Call: 888-297-6203

              Despite bankruptcy being a federal process, you will be surprised to know that bankruptcy laws vary from state to state. Thus, knowledge about federal as well as state laws concerning bankruptcy is extremely important if you are considering bankruptcy as an option to get rid of your debts. Having experienced attorneys by your side, such as those of Los Angeles based bankruptcy law firm Recovery Law Group, can be an asset in such cases. In case, you are looking for debt relief options and want to know about your state bankruptcy exceptions, you can call 888-297-6023 to schedule an appointment with the best lawyers.

              Exemptions specific for the state of Texas

              In case you reside in Texas and are contemplating filing for bankruptcy, it is important that you are aware of the exemptions available for bankruptcy filers. Many times, people are unaware of the fact that exemptions are available to protect their property during bankruptcy. Unfortunately, they are under the belief that they are either going to lose everything they own, or they will be able to get rid of all their debts. That’s why knowing about exemptions is important!

              When any individual files for bankruptcy, everything they own becomes a part of their bankruptcy estate. If an individual file for Chapter 7, there is some risk for them to lose some property. Non-exempt property is sold off in case of Chapter 7 to pay your unsecured creditors. However, with exemptions in place, you might not lose any property. The state of Texas offers several exemptions including:

              • homestead exemption,
              • motor vehicle exemption,
              • personal property exemption
              • retirement account
              • pension exemption

              The specific dollar amount of these exemptions varies. There are specific criteria to be met for these exemptions to come in force. Since most of this is complicated stuff, it is important that you hire experienced and qualified lawyers Texas to help you with the bankruptcy filing.


                *Are you more than 60 days past due on your mortgage?

                *Do you own a home?

                Are you currently working?

                By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

              • Homeowner’s Equity in Chapter 7

                Homeowner’s Equity in Chapter 7

                Call: 888-297-6203

                Filing for bankruptcy is a tough decision for people. This is like admitting that they have been unable to manage their finances in a responsible way. However, once you have run out of options to get rid of your debts, filing for bankruptcy might be ideal. Individual debtors can choose from Chapter 7 or Chapter 13 bankruptcy, though most prefer the former over latter. It is important to remember that while getting rid of debts, you might end up losing some of your assets when you file for Chapter 7 bankruptcy. As per lawyers of Los Angeles based law firm Recovery Law Group, the government has provided exemptions which can help people protect their assets during bankruptcy proceedings.

                Bankruptcy is a way to allow people to start their lives with a clean slate. This can happen if they are able to retain essentials for living like a home, a vehicle, household furnishings, etc. Both state and federal government offer exemptions, though, it will be foolish to assume that you will be able to save all your assets when you file for bankruptcy. Compared to Chapter 13 bankruptcy, Chapter 7 offers lesser flexibility and lower exemption.

                Bankruptcy filers can choose between federal and state exemptions to protect the equity in their property. The bankruptcy attorney can guide you as to which would be most beneficial for you. If, however, you intend to file for Chapter 7 bankruptcy and are able to qualify for it, it is important that you are aware of the amount of equity you have in your home as well as the amount of equity exempted as per your chosen set of exemptions. Though growing equity in the house is great; but, if you wish to retain your house, having low equity on your home would is an asset.

                The legal language might be complex for ordinary people and therefore it is important for you to hire experienced bankruptcy lawyers for your case. While considering bankruptcy, it is vital that you are aware of the specific requirements of the state and the chapter of bankruptcy you are filing under. Filing for bankruptcy without understanding the complications can drag you into problems worse than you are already facing. To consult with expert bankruptcy lawyers, you can call 888-297-6023 and schedule an appointment.


                  *Are you more than 60 days past due on your mortgage?

                  *Do you own a home?

                  Are you currently working?

                  By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                • Need to Update Your Bankruptcy Information? Here’s What You Should Do

                  Need to Update Your Bankruptcy Information? Here’s What You Should Do

                  Bankruptcy involves a lot of paperwork, both while filing for it and even after discharge. It is therefore important to have legal representation to get through with it smoothly. In case you are looking for legal representation, you can call 888-297-6023 to know more about bankruptcy and its discharge. Generally, post-bankruptcy discharge, creditors update information in their accounts which are eventually displayed on the credit reports. However, many times creditors don’t update the information. According to lawyers of Los Angeles based bankruptcy law firm Recovery Law Group, there are options available for individuals if their creditors haven’t updated the bankruptcy discharge information on the credit report.

                  Since bankruptcy becomes a public record, the accounts listed in your bankruptcy are reflected in your credit report. In the case of the bankruptcy discharge, the same should be reflected in your credit report as well as bankruptcy record. Filing for bankruptcy involves mentioning all your creditors. Once the knowledge of your bankruptcy is provided to your creditors, they should ensure that the account is updated on the credit report to reflect its status. After you get your bankruptcy discharged, the accounts should also display the updated status. In case it does not, you can contact the creditor through the information provided on your credit report to ask them to update the accounts as discharged.

                  Bankruptcy paperwork includes “Schedule” which lists all debts included in the bankruptcy filing. You can alternately send a copy of Schedule A, Schedule D or Schedule F to the address listed in credit report along with a copy of your bankruptcy discharge statement and a request to update the information in your credit report. Alternately, you can verify the information through the courts and update it online. Individuals can file for bankruptcy under Chapter 7 or Chapter 13. In the case of the former, no debts are repaid, and discharge is granted within a few months. This type of bankruptcy remains on credit report for 10 years from the filing date. Chapter 13 on the other hand, involves paying some portion of the debt over a course of 3-5 years. This bankruptcy remains on the credit report for a duration of 7 years from filing date.


                    *Are you more than 60 days past due on your mortgage?

                    *Do you own a home?

                    Are you currently working?

                    By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.

                  • Should You opt for Bankruptcy Or Debt Consolidation?

                    Should You opt for Bankruptcy Or Debt Consolidation?

                    If you are under debt, don’t worry; you are not alone. There are lots of people sailing in the same boat as you. There can be numerous reasons for accumulating debts such as sudden medical expenses, loss of a job, increase in mortgage, high tuition fee or buying a new vehicle. Fortunately, there is help available to get rid of huge amounts of debts; the most popular being bankruptcy. It is often the most feared and misunderstood option according to Dallas based bankruptcy law firm Recovery Law Group. Other options like debt consolidation, debt management, and debt settlement are equally viable.

                    Bankruptcy

                    People can end up having a huge amount of debt, even if they are earning well. There are different chapters of bankruptcy through which individuals can get rid of their debts. While Chapter 7 allows you to discharge all your debts in a relatively less time frame, it can be effective for people who have a monthly income less than the state mean for a household of a similar number of people. Chapter 13 on the other hand, allows you to repay some portion of your debt (depending on your disposable income) while getting rid of the remaining at the end of your repayment plan which takes 3 to 5 years. In both cases, your credit rating takes a dip, which means you will not be able to get a loan for some time. Moreover, bankruptcy records are public, i.e. your reputation is under the scanner, your potency to land up a job will be hampered.

                    The repercussions of bankruptcy can affect you for a long time, hence it is important to consider other options before filing for bankruptcy. Alternatives to bankruptcy include using credit counseling, debt consolidation, etc. Even filing for bankruptcy includes going for counseling with an accredited counselor. As per credit counselors, there are three alternatives to bankruptcy; debt management, debt settlement, and debt consolidation.

                    Debt management

                    If you have income enough to afford the monthly payment, you can opt for this arrangement. Since you are not taking another loan, it becomes easy to repay the debt with the credit counselor working out a plan with lenders. A lower interest rate results in reduced monthly payments thereby making it easier to repay the principal amount. Late fees can also be eliminated. However, if you miss on payments, the deal can be revoked, and the interest rate hiked back. This may take nearly 3 years to get rid of debt. This also affects your credit report but unlike bankruptcy, debt management notation is removed as soon as you finish the plan.

                    Debt settlement

                    This is a risky option specially designed for people who are not able to make minimum monthly payments. Debt settlement companies take control of credit card debts. You need to make payments to them, and they will make a settlement offer to the lender, wherein the lumpsum amount is paid to them to settle your debts. You can reduce your debt by nearly 50%, however, there is no guarantee for success. The process (if agreed upon by card companies) can take somewhere between 3 and 4 years. Including the late/non-payment penalty, fees for debt settlement services, etc. you can save 20% of the amount. The credit report shows this for the next seven years.

                    Debt consolidation

                    You can consolidate loan from a bank, online lender or credit union and on its approval can pay off your entire credit card debt. The interest rate is generally lower than normally present on credit cards, thereby reducing monthly payments. Your assets are used to secure the loan, thereby putting them at risk if you fail to make payments. This also opens a new credit line which can end up affecting your credit score.

                    Whatever your circumstances, it is important to make sure that you continue making payments to get rid of debt, preferably focussing on paying the highest interest rate debts first. In case you wish to know which option from those mentioned above will best suit you, consult with expert bankruptcy lawyers at 888-297-6023.


                      *Are you more than 60 days past due on your mortgage?

                      *Do you own a home?

                      Are you currently working?

                      By clicking “Submit”, whether I do or do not purchase any products or services on this website, I hereby give my express written consent to receive calls and SMS/text messages, including calls and SMS/text messages made and sent using automated dialing equipment and/or pre-recorded or artificial voice technology and email, about offers and deals that I wish to be kept informed about from (“Partners”), at the phone number and/or email address provided on this form, including any wireless numbers provided, even if I have previously registered the provided number on any Do Not Call Registry. If I do not make a purchase on this website, it is expressly understood that the Partners retain permission to contact me as specified earlier in this paragraph. Carrier SMS/MMS and data messaging rates apply. I also agree that by clicking “Submit” that I agree to the Privacy Policy and Terms and Conditions.