Solving your Debt Problems
Bankruptcy can help a person eliminate their debts and get a fresh start, but it may not be the best solution to your particular financial situation. There are many factors that can contribute to a financial crisis, which makes each person’s debt problems unique. The best way to determine which debt solution is right for you is to consult a bankruptcy lawyer.
Common Bankruptcy Alternatives
- Debt settlement: Debt settlement is the process of negotiating with creditors to reduce the total amount of money that is owed. Your attorney can negotiate with your creditors to come to an agreement on an amount that is fair and acceptable to both parties. Once a new amount has been accepted, you will pay the agreed upon settlement in full and they will release you from the remaining balance.
- Debt consolidation: In debt consolidation, one large loan is acquired to pay off smaller debts, and usually the loan is secured. This is helpful for many people, as they no longer make multiple payments to each individual creditor, but rather one payment towards the loan each month. In some situations, a consolidation can also involve transferring debts to a lower interest credit card.
- Mortgage loan modification: If you are a homeowner, modifying your mortgage loan can help reduce your interest rates and get you caught up on payments. Your attorney can negotiate with your lender to seek a lower interest rate, reduction in penalties and late fees, or a reduction in principal. It can result in extra money each month that can be used to pay off other creditors.
- Debt counseling: In some ways similar to Chapter 13 bankruptcy, debt counseling involves negotiating with your creditors to come up with a repayment plan with monthly payments that are more affordable.
Protect Your Interests
If you are considering an alternative to bankruptcy, it is crucial that you retain the counsel and guidance of a knowledgeable attorney. There are many companies that claim they can get your debt issues solved in an instant, but reaching financial freedom is not instantaneous. To ensure your rights are protected and you are not taken advantage of by a bogus company or that your lender does not trap you in an underwater mortgage, you need the advocacy and direction of a skilled and experienced legal team whose top priority is your best interests.
Dodge & Vega, PLC is a respected legal firm that has successfully represented individuals, families and business owners in financial difficulties. We understand the hardships that can result from financial problems and will develop a debt-relief strategy that meets your specific needs. Attorneys at our firm will carefully review your financial situation, and listen closely to your concerns. Using our extensive legal and financial knowledge, we will create a plan to help you get out of debt. We are members of the American Bar Association, Arizona State Bar, National Association of Consumer Bankruptcy Attorneys (NACBA) and American Bankruptcy Institute, and are ready to assist you in any way that we can.