Debt solutions present consumers with viable opportunities to end their debt. For some consumers, the solutions take away stress and worry, while for others they could become the difference between renting or buying a new home. Debt repair solutions give these consumers the advantage to settle debt and improve their credit ratings.
Negotiating with Creditors for Settlements
Negotiation strategies allow attorneys to represent consumers when contacting creditors. The attorney could help the consumer by securing a settlement through their creditors, and for some, this could mean up to a fifty percent discount. They could also set up a short-term installment arrangement to pay it off completely. This debt repair option could help consumers eliminate negative listings on their credit reports.
Is Bankruptcy the Appropriate Choice?
The two primary forms of bankruptcy chosen by consumers are chapter 13 and 7, which allow the consumer to start a new payment plan or liquidate to pay off their debts. Both options allow them to prevent foreclosure and repossession through an automatic stay, but chapter 7 allows the consumer to sell assets to settle their debts, while chapter 13 breaks up the debts and divides the payments.
Modifying the Consumer’s Loans
Loan modification allows the attorney to decrease the total value of the principal or change the interest rates; they could also extend the duration of the loan. The choices determine the value of the savings to the consumer, for example, if they extend the loan, the outstanding balance or late fees are added to the end of the loan.
Credit Counseling and Advisement
After bankruptcy, consumers should attend credit counseling and advisement. These opportunities prepare consumers for the aftermath of bankruptcy, helping them eliminate any additional debts that weren’t settled through their claim. It also helps them learn strategies to rebuild their credit.
Debt solutions prevent foreclosure, repossession and additional credit difficulties. Consumers have multiple opportunities for settling debts and repairing their credit, and these are achieved with negotiations or by filing a formal bankruptcy claim.