Different Debt Relief Options
Today’s financial environment in Anaheim, CA, has made it difficult for Debtors to dig out from under their financial struggles. However, there are a number of Debt options that you can chose from to help you maintain your finances. The Orange County bankruptcy attorneys at Tran Bankruptcy Law can provide you with the necessary information to make a decision as to which debt option best fits your financial needs.
What Debt Options are Available
The most common options to fixing your finances and credit are: Credit Counseling, Debt Negotiation and Bankruptcy.
Anaheim Credit Counseling
Credit counseling is where a financial adviser will review your income and expenses to determine the best budget that will fit your needs and pay down your debt. Credit counseling is best used for people who are thinking about taking out major loans such as a student loan, mortgage or business loan. The credit counselor can help you determine whether the loan is affordable under your circumstances. This is extremely helpful because they build a budget for you, which is the first step in financial management.
Anaheim Debt Negotiation
Debt negotiation is the attempt to negotiate and settle with creditors. An attorney or negotiator will contact your creditors in attempt to reduce your principal, interest rate or monthly payment. The problem with debt negotiation is that most Creditors will not settle a debt unless you are behind. In other cases, they will not settle unless there is already a lawsuit filed against you. Debt negotiation is an extremely risky tactic. However, if you have an old loan or credit card that is ruining your credit score, you can settle that debt for less (in some cases, much less) than the amount owed so that you can start rebuilding your credit.
Lastly, there is bankruptcy. Many people tend to think of bankruptcy as a last resort. In some cases, people are concerned about the stigma of bankruptcy. However, as stated above, the economy has been stale for a number of years, causing a rise in bankruptcy filings. Bankruptcy is a much more common practice and should be viewed as a top option for people who simply cannot keep up with their monthly payments to creditors.
There are a number of types of bankruptcies to fit most everyone’s needs. For example, there is Chapter 7, which provides an “instant discharge” of your debt. Or you can file Chapter 13, which will restructure your monthly payments to something manageable. As long as your payments are made, Creditors cannot attempt to collect. The Orange County bankruptcy attorneys at Tran Bankruptcy Law will provide you will all the information necessary so that you can make an informed decision.