If you're currently swimming in debt, the last thing you want to do is lose your home, car, and other valuables to creditors. No matter how small or large debt is, it can make your life miserable. But with the right help, you can eventually take control of your life and finances. The two options below could be the best options for you.
File Chapter 13 Bankruptcy
Many people file Chapter 7 bankruptcy to get out of debt. But to qualify for Chapter 7, your debt must be substantially higher than your income. If your debt is lower than your income, you may consider filing for Chapter 13.
Chapter 13 allows you an opportunity to pay off your creditors instead of ignoring them. The repayment time may vary from individual to individual but 60 months, or five years, is usually the maximum amount time you spend in Chapter 13. You can either file for Chapter 13 yourself, or you can ask an attorney to help you.
If bankruptcy isn't the right option for you, then consider consolidating your debt.
Consolidate Your Debt
Debt consolidation allows you to restructure your debt into smaller, more affordable payments. Consolidation may be right for you if your debt is 50 percent less than your income, you have a reliable income, and if you plan to keep most of your assets. You must also be ready to make better financial choices in the future, such as budgeting your finances and maintaining a healthy savings account.
Many people use debt consolidation companies to help them manage their financial problems. However, you may consider obtaining the help of a debt consolidation attorney instead. An attorney understands the laws regarding debt consolidation and may be able to secure lower payments for you.
In addition, an attorney can help you choose a repayment time that works best for you. You need sufficient time to pay off your debt. For example, if you expect to see an increase in your income some time in the future, you may choose a repayment time that allows you to repay your debt sooner. You also want enough time to catch up on your mortgage and car payments. Creditors may potentially sue you in court for these items if you can't repay them as agreed.
You can learn more about debt consolidation and whether or not it's right for you by contacting business loan attorney services.