If you are struggling with debt, you are probably weighing your options to see what will work best for you. This is exactly what you should be doing. So, what should you do if you want to avoid bankruptcy, but your debt is overwhelming?
1. Do Nothing:
While you can do nothing, it is important to keep in mind that your debt will continue to grow. The interest and penalties that can accrue by not dealing with your debt head on, will leave you owing more than the initial amount. Eventually, this will likely lead to lawsuits and judgments against you.
2. Borrow Money:
Some people can borrow money to pay off debt. If you are able to do so, you may be able to create a manageable repayment plan or pay off the debt entirely in a lump sum. Be careful about taking out a loan to repay a debt, as the terms of the agreement may not be better than your current situation. Do your research and take your time before agreeing to anything.
3. Negotiate:
An option that many people overlook is negotiating down your debt with the creditor. This is possible and takes time and patience on your part. Many creditors will work with you to come up with a better repayment plan or even take a lump sum payoff. If you decide to hire a professional to help you with this process, please do your research. Keep in mind that some creditors will not work with debt consolidation companies. Another thing to consider is that there are tax ramifications of settling your debts. Whatever debt your creditors do forgive can actually be considered taxable income to you. So, if you’re struggling to pay your taxes now, settling with your creditors might make that problem worse.
Are There Other Options?
Yes! You may want to consider speaking with a qualified bankruptcy attorney for information the best options for your current situation. Bankruptcy is a viable option to reduce or eliminate your debt entirely! Most attorneys offer free consultations and will provide you with other options to get your debt under control. This will give you more information and more options for tackling your debt.
Looking For More Information About The Best Options For You?
Contact our office today for a free consultation. At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up your free consultation today.