Facing unmanageable debt can certainly be a daunting experience, especially with the difficult financial times. Attempting to negotiate with creditors may be difficult, not to mention that some would want to repossess any item you have. Fortunately, you do not need to suffer in silence. A bankruptcy lawyer Las Vegas can help you.
There are different options that one can use to settle debt. Debt consolidation, debt settlement and bankruptcy are some common ways you can relieve debt.
Consolidation is a part of debt settlement where an agency advises consumers to stop paying their credit card debt. As a consumer, you need to sign an automatic bank withdrawal authorization where the agency will withdraw a certain amount on a monthly basis. The amount is equivalent to 1% of the total debt being consolidated. The program lasts for 3-4 years.
With this option, you can avoid registering for bankruptcy. On the downside, debt consolidation is prone to fraud. Furthermore, it’s not regulated properly and it has a tendency to attract unscrupulous people.
Debt settlement Las Vegas
This is done by contacting the creditors and offer to pay cash as a full settlement of a debt. This is mainly 20-50% of the full sum of the owed amount. The percentage may vary depending on the collection agency, the age of the debt and the financial condition of the debtor. Some creditors will allow you to pay in installments over a period of time. You may not need an attorney to negotiate with the creditor. It is necessary to get in touch with a bankruptcy attorney Las Vegas when you review the settlement documents before you sign them.
Debt settlement negotiations can certainly be nerve-wracking, time consuming and frustrating. You may even encounter rude creditors who may harass you or make outrageous threats. Fortunately, an attorney can represent you during the negotiations.
Debt settlement Las Vegas is advantageous if you are looking to avoid bankruptcy. Submitting for chapter 11 bankruptcy may be complicated and too expensive for some consumers. Debtors with substantial debts may not qualify for chapter 13.
However, debt settlement Las Vegas may not be ideal. This could lead to negative entries on your credit report. This means that if you have several creditors, you may have to deal with consecutive negative entries for each creditor. Your report improves after you’ve settled the debt and this can last for 6months-1 year.
Additionally, debt settlement may cost you thousands of dollars. A Chapter 13 bankruptcy may cost you only a fraction of the payment. Moreover, you are not protected by the court even after engaging in fruitful negotiations. Creditors can forego the negotiations and continue with foreclosures, lawsuits, and bank levies.
Bankruptcy Lawyer Las Vegas
A lot of people are quick to dismiss bankruptcy without knowing what it really entails. Bankruptcy not only helps you eliminate debt, it can also provide numerous benefits. A bankruptcy lawyer Las Vegas can help you file for bankruptcy.
In addition, bankruptcy can be classified into Chapter 7 and Chapter 13
This type of bankruptcy is used when you have debt from unpaid utility bills, medical bills, credit cards and even personal loans. Nonetheless, your eligibility for chapter 7 is determined by your assets and income. This means that not everyone who wants to file for Chapter 7 is able to do so.
This type of bankruptcy provides a shelter to get your finances back in order by stopping any automated collections. Debts are reorganized and can be reduced for you to pay over a period of 3-5 years. Most people think of Chapter 13 as a plan for repaying all your debt. In reality, this type of bankruptcy can deliver great savings compared to Chapter 7.
Some of the benefits of filing for bankruptcy include:
Stopping wage garnishment
Filing a bankruptcy petition stops any wage garnishment. This order is automatic once you file for bankruptcy. In a case where the creditor continues wage garnishment, he must pay the money back immediately.
If you are facing a repossession of any kind, the Bankruptcy Attorneys Las Vegas can help you protect your home. An automatic stay can stop creditors from taking any further action against you.
Facing foreclosure of your home can be traumatizing. A bankruptcy lawyer Las Vegas can help you get caught up on the mortgage. You could end up paying back your mortgage delinquency over a 5 year period at 0% interest rate.
Handling debt on your own doesn’t have to be complex and daunting. Contact an experienced debt law firm to know what your options are and learn more about how to settle your debts without being harassed.
We are one of the best bankruptcy attorneys Las Vegas. Come in for a free consultation. With more than two decades of experience, we can help with the issues you may have. Call us at (702) 800-7230 today.