If you’re experiencing financial difficulty, the sooner you contact a bankruptcy attorney the better, because you might not be aware of all the debt relief options available to you. If you wait too long or try services like debt settlement or debt consolidation first, you’ll probably end up in a worse situation than the one you were in to begin with.
You’ve probably seen ads claiming that debt settlement or debt consolidation is better than filing for bankruptcy. But these companies don’t tell you the whole story. At best, they can try to negotiate with your creditors for slight reductions in debt or a little lower monthly payment—but for most people, this doesn’t solve much in the big picture. Plus, it will likely ruin your credit in the meantime.
Debt settlement companies will often advise you to stop paying your debts, whether as a tactic to negotiate with your creditor or to give you time to “save up” for a lump sum payoff. However, falling further behind on your payments will severely damage your credit. It could also be to your disadvantage to cash out a retirement account to pay a credit card settlement when that money would be exempt if you filed for bankruptcy.
The idea of filing for bankruptcy isn’t something anyone wants to think about, but it’s a solution offered by the bankruptcy laws to help people get back on their feet. The debt settlement companies are out for themselves, whereas Southbay Bankruptcy is dedicated to helping families actually solve their financial problems. Chula Vista bankruptcy attorney Kerry Denton can explain what bankruptcy can do for you. In addition to erasing your debt, bankruptcy might also help you stop a foreclosure and protect assets you might otherwise sell in the struggle to pay your debts.