Indiana consumers should explore all options for debt settlement before filing a bankruptcy claim. While these claims provide them with additional time to settle debts, they could also lead to potential hindrances that could cause further problems down the road.
Methods of Achieving Debt Relief
The first option for achieving a settlement of your debts is to allow your attorney to negotiate with your creditors. It is possible that your attorney could arrive at a settlement value that is less than fifty percent of the total balance, which could help you pay off the debt quicker. You could also acquire a more effective payment plan that offers you the change to submit smaller amounts each month.
Modification of Loans
Your attorney could review your mortgage documentation to determine whether or not there are any hidden terms that could lead to a foreclosure. According to lender laws that were initiated recently, all lenders must prove affordability before offering a mortgage to consumers. Any predatory-based terms found in the contract open the door to a modification of the loan by your attorney who can enforce this requirement by filing a motion in court.
Should You File for Bankruptcy?
While debt consolidation is possible by acquiring a new loan to pay off all debts, it will cause you to incur more interest charges and finance fees. The only way to avoid this when you are severely in debt is to file bankruptcy. What you must understand is that after you file, and it is approved in court, you are required to follow all guidelines outlined in your case. If you file for chapter 13, this implies that you must allow the court to garnish your payment from your wages. You will use all expendable income beyond this value to pay off additional bills. These cases last up to five years.
Lawyers Fort Wayne IN who understand methods for achieving debt relief may offer you alternatives to bankruptcy. However, this is not always the most effective choice for all consumers. If you wish to discuss these opportunities with an attorney, you should visit the website for further details. To discuss all possible avenues for debt settlement, you should call Ripke Law PC Fort Wayne to talk to Lawyers Fort Wayne IN today.