Jacksonville Debt Settlement Lawyer
Life can occasionally throw some curveballs at us, and the impact can be that we end up facing financial debts that we struggle to repay. Major illnesses, divorce, job loss and more can all lead to debt that becomes overwhelming. At some point, you might conclude that repaying your debts is not possible. If you reach this point, it is time to learn your legal rights and options for getting out of debt.
Debt settlement is one of many options that could provide you with relief from unpayable debts. When looking into the best option in your case, you should consult with an experienced debt relief attorney. A smart and compassionate Jacksonville debt settlement lawyer at the Law Offices of Carol M. Galloway can help you find a strategy that works for you and your family. Call us today at 904-694-5489 to learn how we can help.
Debt Settlements and Unsecured Debts
Some debts are nearly impossible to avoid. Child support payments, taxes, and school loans are among the debts that you must repay, even if it is extremely difficult to do so. Other debts, including medical bills and credit card debt, are not secured, which means that there might be ways to avoid repaying all or some of those bills.
Debt settlement will involve a person reaching an agreement with their creditors that allows them to pay a lower amount than they owe. Perhaps a debtor owes $15,000 in credit card payments but can only pay $10,000. The credit card companies understand that if that person files for bankruptcy, they might not see any of that money. Therefore, the company may agree to forgive some of the debt in the hopes of minimizing their losses.
An attorney can help a person negotiate terms with their creditors and determine whether there is a way to settle the debt so that the owing party can become solvent without filing bankruptcy. Of course, there are plenty of cases where the best option might be filing for bankruptcy rather than attempting to settle with credit card companies or other creditors.
Credit Scores and Debt Settling
Settling debts means that the debtor cannot pay the full amount they are obliged to under a contract, such as a credit card agreement. Not surprisingly, such issues can lead to a significant dip in the person’s credit score. While the debtor may benefit from the new agreement and more reasonable payments, there is little they can do to insulate themselves from a knock to their credit score that will likely persist for years. However, there might not be a way out of debt that protects a person’s credit score. Filing for bankruptcy will also cause the debtor’s score to drop.
Getting out of debt might be challenging, but tackling the issues head-on is a good way to get back to a stable financial situation as soon as possible. An attorney can help debtors learn more about their options and legal rights.
Bankruptcy Versus Debt Settlement
Debt settlement might function as a way to avoid filing for bankruptcy. Individuals considering debt settlements might wonder which option will work best for their situation. Bankruptcy may have more implications for a person’s credit, but it will often offer individuals a way to rid themselves entirely of the bulk of their debt.
Filing for bankruptcy can help a person by providing more protections against a lawsuit than debt settling will offer. However, in bankruptcy, a person can lose certain assets, which a court will use to pay off some of that individual’s debts. This can be overcome by taking full advantage of the available bankruptcy exemptions, something an experienced bankruptcy attorney is skilled at accomplishing. If the debtor has no non-exempt assets and lots of dischargeable debt, the result of a Chapter 7 bankruptcy can be akin to a clean slate. However, not everyone can qualify for a Chapter 7 bankruptcy.
Chapter 13 bankruptcies involve repayment plans and protect against lawsuits while letting the debtor maintain ownership over certain assets. Chapter 13 is especially attractive if the debts you are fighting cover secured property such as a home mortgage, car payment, or home furnishings, and you want to be able to keep the property safe from foreclosure or repossession.
An attorney can help individuals understand the pros and cons of each available option. Contacting a Jacksonville debt settlement lawyer is a good first step in finding a solution.
How Debt Settlement Lawyers Help
A debt settlement lawyer will review the client’s financial situation and debts and determine that person’s best options. The lawyer can counsel the debtor regarding bankruptcy versus debt settlement as each options might apply in their case. When a person wants to settle their debts, the lawyer can handle negotiations with creditors, which means that the debtor no longer has to speak with those creditors. The lawyer can help create a plan that involves reasonable repayment at a lower rate than the debtor was previously facing.
Hiring a Jacksonville Debt Settlement Attorney
If you are facing debts that you cannot repay, you need help. Speaking to a debt settlement lawyer will help you understand your rights and options. Call the Law Offices of Carol M. Galloway today at 904-694-5489 for a consultation with a dedicated Jacksonville bankruptcy lawyer.