Know your options when dealing with debt

It’s a good idea to know your options when dealing with debt, no matter how much you have accumulated over the years. Debt is a tricky situation and most people don’t realize they have multiple ways of dealing with the debt they have on credit cards or in loans. Here are some of those options for dealing with debt.

The first option is for you to work with a credit counselor. This is usually a prerequisite to filing for bankruptcy anyway, so why not get try this option first? A credit counselor will review your finances, the debt you have accumulated and then determine a repayment plan for you to follow. The counselor will do his or her best to come up with the best course of action for you to repay the debt in the quickest way possible.

There’s no harm in talking to your creditors. If you are willing to put a little time and effort into it, it’s possible for you to reduce your debt and even renegotiate the terms of your loan. This works well for people who have a strong track record of credit. For some creditors, this is a better option for them than having the borrower file for bankruptcy.

You can also decide to sell some of your assets to help pay down your debt. If you really don’t need a car to get to and from work, then why not sell it for as much as possible? Then use this money to make a repayment on one of your debts. If you are having trouble making mortgage payments it might be possible to have a short sale on your house. This will help you get out from under the mortgage and you still did not have to file for bankruptcy.

An experienced bankruptcy law attorney in Long Island can answer all of your Chapter 13 bankruptcy questions and explain the process of filing if you so wish to take that route.

Source: Southeast Missourian, “Dealing With Debt: An Overview of Your Options,” Margaret Francis, June 07, 2017