When Life Gives You Lemons — Call an Attorney

When you are on the road to debt recovery, there are many legal options that can assist you in pursuing debt relief. These programs will help you get out of debt faster and you might also be able to avoid bankruptcy. 

Education and Planning

One of the goals of debt relief services is to educate a debtor about debt. Instead of focusing on your debts on a small scale, the goal will be to encourage you to think of the bigger picture.

Another goal of debt relief services is to help you think about everyday cash flow concerns. By having an adequate cash flow, you won't have to worry about being forced to spend more money than you can afford. Your counselor will look at your existing debts, expenses, and income to get a full understanding of your financial situation. 

Settlement Negotiations

Even if you don't believe that you will not be able to pay all of your debts, you might be able to negotiate a settlement where you pay a certain percentage in regular installments. If you do not want to interact with creditors anymore, a debt relief service may be able to negotiate the settlement on your behalf and will then contact your creditors for you and make payments.

Types of Debts

How you handle your debts depends on the nature of each debt. For example, with secured debts, you will need to continue to make payments or the secured asset will be seized. A common example of this is with car payments. However, with child support, the penalties are much more severe and may lead to jail time. This is also true with tax debts.

Any services or utilities that you don't pay for will likely be discontinued. Therefore, you will not only want to pay them to avoid falling deeper into debt but you'll also be able to avoid losing your services.

Discharging Debts

If you have unsecured debts, you might be able to discharge them through bankruptcy. If you don't discharge them, you will not be forced to pay them, but you might accrue interest and penalties. Not paying can also negatively affect your credit score.

With student loan debts, you will not be able to discharge them, but you might be able to negotiate a different repayment plan. Regardless of the options you choose, by being informed about the options available, you'll be much more likely to get out of debt.

For more information, reach out to local debt relief services.