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Bankruptcy or Debt Negotiation?

In many cases, a person may not realize the full extent of their debt problem until it’s too late. With debts building up and income often remaining flat, a person may find him or herself simply unable to keep pace with financial obligations. If this is the situation, a person has two principal options for attempting to resolve the matter: bankruptcy and debt negotiation. These options allow a debtor to take a proactive approach to getting rid of their debt.

If you are facing overwhelming financial obligations, you may be entitled to pursue bankruptcy or renegotiate the terms of some of your repayment agreements. For more information regarding your options, contact the Joliet bankruptcy attorneys of the Law Offices of Stuart B. Handelman, P.C., at 815-722-2201 today.

The Pros and Cons of Bankruptcy

Bankruptcy is often considered the most comprehensive solution for debt problems. When a person cannot handle their minimum payments, they may qualify for bankruptcy. Through this process, a person can either file for Chapter 7’s liquidation bankruptcy or Chapter 13’s repayment plan.

While bankruptcy may be an attractive solution for some, filing for bankruptcy has a negative impact on a person’s credit score and may influence their ability to get loans in the future. Also, there are some cases in which a Chapter 7 bankruptcy may expose a filer’s assets or property to bankruptcy sale.

The Pros and Cons of Debt Negotiation

Debt negotiation offers debtors the option to consolidate loans, negotiate the terms of a loan, and even extend their payment periods. Naturally, creditors want to recover the money that is owed to them by debtors. If this means accepting lower-profit terms for a loan, many creditors will be quicker to agree to that sort of change as opposed to losing the value of that debt in a debt discharge.

While this type of debt solution can offer a great way for some debtors to deal with their obligations, it does not provide the same sort of legal protections and opportunities as bankruptcy. After all, a creditor can reject a debt negotiation plan if they do not agree to it.

Contact Us

If you have reached a breaking point with your debts and need help dealing with these obligations, we are prepared to be of assistance. To learn more about debt negotiation or bankruptcy, contact the Joliet bankruptcy lawyers at the Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.