If you are struggling to pay off a large amount of debt, do not keep trying to figure this out on your own. By consulting with an experienced attorney who specializes in debt relief, you will be able to gain control of your finances once again in a quicker time period than if you were to keep trying to make payments on your own.
Our Medley debt attorneys provide custom debt solutions.
When To Seek Help
How do you know when the right time is to start seeking out debt relief solutions? There are two main scenarios in which you should immediately begin seeking debt relief, which include:
- If your total, unsecured debt is half or more of your gross income
- If you feel that it is impossible to repay your debt within five months
The debt that you have incurred may be from credit cards, medical bills, student loans, IRS debt, among many other causes. No matter what the case may be, it is important to seek out debt relief if you cannot get caught up and are struggling to make payments on time.
If you are having trouble repaying your debt, the first recommended step is to meet with an experienced bankruptcy lawyer. Your bankruptcy lawyer will be able to guide you on whether the right time is now in regard to filing for bankruptcy, or if there are other debt relief solutions available to you.
If bankruptcy is the best course of action for your specific situation, you will typically file under one of the below three chapters.
Chapter 7 is the most common type of bankruptcy that is filed. Under Chapter 7, most unsecured debt is completely eliminated, and consumers repay some of the debt through liquidating any qualifying assets. However, in order to qualify for this chapter, it is necessary to pass a Means Test where your income vs. your debt is considered.
If you do not qualify for Chapter 7, you can still file for bankruptcy under Chapter 13. Under this chapter, you are typically able to keep your home, car, and other major assets, so long as you continue to make your monthly payments. In most cases, consumers who file under this chapter are granted an extended period of time to repay the overall debt or reduced monthly payments to better fit their budgets.
Debt Management Plans
If now is not the best time to file for bankruptcy, your debt relief attorney will be able to guide you on the best debt relief solutions for your financial situation.
There are a variety of avenues that consumers can take to finding the best debt management plan for them. For example, your attorney can negotiate with your lenders on your behalf to create new payment terms that benefit you financially.
Your attorney can also try to lower your overall interest rates, place a temporary pause on payments, refinance your home, lower the original loan amount, reduce monthly payments, or extend your deadline for paying back the full loan.
Contact Our Medley Debt Attorneys
At Loan Lawyers, we’ve got your back. We know it is stressful and frustrating when you are facing a large amount of debt. You do not have to go through this alone. With over 100 years of combined experience, our skilled attorneys will find you the best debt relief solution today.
Contact us today and request a consultation with our Medley debt attorneys.