It would be nice to be debt free, and have no monthly obligations to meet. This would free you up to save your money for a rainy day, to take a trip, or to make repairs to your home. But, this is simply not the reality most of us face. Perhaps the next best thing is to have a simplified debt program, whereby you make one monthly payment for all of your monthly expenses. This can be accomplished in a number of ways.
Debt consolidation can be done in or out of Court. Here’s how:
- Bankruptcy: A chapter 13 bankruptcy takes all of your debt and puts in a plan of repayment. The Court will review and approve the plan, and depending on what you owe, you will make one payment to the Trustee each month. The Trustee will then pay your creditors, some in full and some only a portion of what you owe. This results in substantial savings to you, and also makes paying your bills easier because you only make one payment that covers nearly all your debt. There will be a few things that you have to pay separately, such as utilities and living expenses, and perhaps your house payment.
- Consolidation of debt: there are numerous companies out there that offer services to consolidate your debt. The typical arrangement is that you allow the company to negotiate lower payments on your behalf, and you then make a monthly payment to that company for disbursement to your creditors. This is similar to a Chapter 13 bankruptcy, but takes place without actually filing bankruptcy.
The choice is yours, and should be made after careful thought. Keep in mind not all creditors work with debt consolidation companies, but are required to accept a Court approved bankruptcy plan. There are also consolidation companies out there that prey on distressed consumers, and offer no real help. Do your research before making a commitment, and let us help you with that task. We have experience helping to get people out of debt, and can help you too!
If you have questions about debt consolidation and whether it will work for you, call our office for answers. Call a Plantation, Florida debt relief attorney today for more information.
