The idea of filing bankruptcy can be off-putting to many people. For years there was a certain negative association with filing bankruptcy, but that stigma no longer exists in today’s society. Many celebrities have filed bankruptcy, and even the President has used this legal remedy for business purposes. Still yet, there are plenty of people who are hesitant to file a bankruptcy case and prefer to find other solutions to their money problems. Fortunately, there are other ways to handle burdensome debt and if one works for you, you may be able to deal with your growing debt load outside the four walls of the Bankruptcy Courthouse.
Alternatives to filing bankruptcy when you are struggling to pay all of your bills include:
- Refinancing your mortgage: this tool allows you to find a new lender to write your mortgage loan, using the new loan to pay off the existing one. In this scheme it is ideal to find a new lender that will make you a loan at a lower rate, so your new house payment is lower than what you currently pay.
- Debt consolidation: reputable debt consolidation companies will negotiate with your current creditors for more favorable repayment terms. This may include a reduction in interest rate, or allowing you to pay off the loan in one lump sum that is much lower than the current balance. In either scenario, you enjoy a substantial savings and can put your money to use elsewhere.
- Modification of your mortgage: a mortgage modification is a plan whereby your current mortgage holder rewrites your current note, to a lower rate and lower payment. The benefit here is that you do not have to find a new lender, and the paperwork can be less cumbersome than when you apply for a loan with a new bank.
In any of these situations the guidance of an experienced legal professional is advisable. Banks tend to throw out confusing terms, or exercise delay in replying. But when you enlist the services of a reputable attorney, you can rest easy knowing the hard part is in someone else’s hands. You can also be assured that no viable option will be overlooked, and that you will not be taken advantage of by an unscrupulous lender. For help managing your debt, call our office today.
For answers to your questions about debt, contact us at www.DsouzaLegalGroup.com.