Debt Settlement in a Chicago Bankruptcy
Knowledgeable Guidance from Our Chicago Bankruptcy Lawyer
If you have found that is has become increasingly difficult to stay on top of your bills and repay incurred debt, it may be time to explore the options that are available to you. Although filing for bankruptcy may be an effective solution, it is usually recommended that you examine all possible alternatives first.
In doing so, you may be able to avoid the negative ramifications that bankruptcy could bring such as a diminished credit score, for example. Instead, you may be able to resolve your debt-related issues through an effective alternative such as debt settlement or debt consolidation. Both of these solutions would make it easier for you to manage your debt in a long-term sense, rather than completely discharging it through a Chapter 7 or Chapter 13 bankruptcy.
Debt settlements may lead to:
- Reducing or eliminating your debt
- Helping you manage your long-term debt
- Improving your credit score
- Reaching a re-payment plan.
How debt settlement work in Illinois?
Debt settlement is a financial solution that would require you and your bankruptcy attorney to negotiate with creditors to whom you owe money.
Since most creditors are only interested in collecting on overdue payments, many are willing to work out an agreement in which the total cost of your debt would be discounted—thus making it easier for you to repay the money that you owe over a shorter period of time. Debt settlement may also require you to work out a suitable payment plan, which means that you would have more of an obligation to make the lessened payments on time. By enlisting the help of Chicago bankruptcy attorney Joseph P. Doyle you can ensure that negotiations are handled favorably and that you are comfortable with the eventual agreement.
When is It recommended?
Everyone's financial circumstances are unique.
For this reason, it is highly recommended that you discuss your case with a Chicago bankruptcy lawyer before moving forward. In doing so, you can have the opportunity to explore all of your options under the guidance of an experienced legal professional, and then make an informed decision about your future. You might think that bankruptcy is the right choice for you, but it may also be true that you could greatly benefit from a viable alternative like debt settlement.
While both would show up on your credit report, the consequences of pursuing debt settlement may not be as taxing as filing for bankruptcy. This alternative is only recommended by our firm if we truly believe that you would benefit from it in the end. Schedule a confidential consultation with Bankruptcy Attorney Joseph P. Doyle as soon as possible. Then we can determine which action is right for your financial situation and ensure that you are comfortable moving forward.