Sometimes filing for bankruptcy just isn’t in the cards for some people. Whether they were unable to qualify or the timing just isn’t right, there are a number of alternatives to help gain debt relief.
Debt settlement gives you the opportunity to negotiate with your creditors to pay back your debts for less than you originally owed. It starts by approaching a debt settlement company to help decide a monthly amount you would be able to pay, then start making monthly payments to an account held by the debt settlement company.
Once you have built up an ample amount within the new account, the debt settlement company will then reach out to your creditors to make an offer.
If your creditors accept the offer, they may be willing to limit the amount on the debts you owe, allow a smaller one-time payment, or even extend the plan for your payments to give you more time to fulfill them.
Sometimes a creditor may sue you when you believe payment on a debt is unjustified. In these cases, you may be able to defend yourself. A disputed debt is a bona fide disagreement between a creditor and a debtor as to the existence of a debt or the amount owed by the debtor.
In many cases, if you are being contacted by a creditor about a debt that you do not recognize, or is higher than you what you actually owe, you have a right to dispute the debt. If you would like to move forward with the dispute, it must be done within 30 days of the initial contact with your creditor. All collections efforts on the part of your creditor will also be halted during this time until the matter is resolved.
If you did not dispute the debt, there are still a number of alternatives to consider.
Debt refinancing. Also known as debt consolidation, allows you to refinance your debts, and you will be given a loan to keep up with your payments. This does provide lower interests rates and a longer maturity, but it does not fully eliminate your debts. Consulting with an experienced debt relief team can help ensure certain debts are not disqualified for a bankruptcy discharge should the need arise.
Financial Assistance Programs. In the state of California, there a several programs designed to help debtors pay back a number of different types of debts, such as mortgage payments and utility bills.
Informal Payment Agreements. You may be able to reach an agreement with your creditors for debts that are relatively small. Although this may be able to help you avoid bankruptcy, utilizing credit counseling can be extremely useful when seeking these arrangements.
How The Turoci Bankruptcy Firm Can Help
If you have found yourself drowning in debt and simply looking for a way out, our seasoned debt relief team may be able to help. We utilize a personalized and compassionate approach and work tirelessly to get you the financial freedom you deserve.
If you would like to learn more about the many options of debt relief we can help you pursue, contact us today through our website, or give us a call at (310) 846-8454 to schedule a consultation today!