Whether you are looking at debt settlement or bankruptcy, or are perhaps trying to determine which of these would be a better option for you, the professional attorneys at Blevins & Hong can help you. We have years of experience of helping customers find a solution to their financial problems and we offer honest, straightforward and useful advice.
Many creditors will accept a debt settlement as it is preferable to a customer filing for bankruptcy, and debt settlement means negotiating a lower monthly payment amount or interest rate with your creditors. You may also be able to negotiate a lumps sum that is lower than the total amount owed, saving you money on the debt.
When Is Debt Settlement a Good Option?
Debt settlement may be your best option if you earn too much money to qualify for a bankruptcy but are still not able to pay all your unsecured debts. In the state of Georgia, to be eligible to file for Chapter 7 bankruptcy you must pass a required means test, or you must earn less than the median salary in the state. Many people simply don’t meet these criteria, partly due to today’s poor economy. Here at Blevins & Hong, we will do our best to help you determine which of the options may be best for your specific situation.
A debt settlement can actually help your credit, as many creditors consider the outstanding amount to have been paid in full and report it as such, even if you do not pay the full amount. You can make a start on rebuilding your credit and fixing any past damage to your credit score caused by late payments.
If you have many creditors that you can’t afford to pay, debt settlement can be frustrating and cumbersome, as each creditor must be contacted individually to negotiate a lower payment amount or lower interest rate. Creditors aren’t obligated to work with you and those that don’t want to negotiate with you can still call you and send those annoying letters asking for payment.
However, bankruptcy has the advantage that once an automatic stay takes effect, your creditors must by law stop harassing you for payment, and under the laws of bankruptcy all your creditors have to follow this plan.
The law offices of Blevins & Hong can help you to make sense of these options, and decide whether Chapter 7 bankruptcy, Chapter 13 bankruptcy or debt settlement is in your best interests. Your situation and your financial goals will help to determine what is best for you, and an experienced attorney will be able to advise you.
We offer a free consultation, along with the opportunity to make a new start. Contact Blevins & Hong today.