With so many people today struggling to get their financial debt under control, a lot of companies have popped up offering various options. Consolidation loans, which tend to have higher interest rates, are attractive to a select group of people who are in financial trouble. Debt settlement companies are another option that can get people who are trying to pay off their debt into more serious problems than they already had. Unfortunately, families often get into these programs trying to avoid filing for personal bankruptcy. As a bankruptcy attorney in Cornelius, NC might tell them, debt consolidation and debt settlement customers usually file for bankruptcy after attempting to resolve their debt that way.
In order to avoid the stress of a high-interest consolidation loan or the constant calls from creditors because the debt settlement company has not paid them, individuals and couples with more debt than income should consult a bankruptcy attorney in Cornelius, NC to get information about how chapter 13 bankruptcy could change their lives. Because bankruptcy goes through the federal courts, creditors are required to comply with the terms. They cannot harass their customers or increase interest rates over the course of the payment plan.
With bankruptcy, a family gets a chance to regain their financial footing. Since the monthly payment is based on the household income, it will never be more than what they can afford. Of course, it will probably be necessary to cut some things out of the budget. Premium television channels and regular dinners outside the home might need to be eliminated to make it possible to make the monthly payment to the bankruptcy court. After the trustee receives the payments, they are divided according to the plan and delivered to the creditors. After the bankruptcy is filed, creditors have to deal with court or the trustee if they have any issues. They cannot contact the customer.
Families and individuals in financial trouble who have tried unsuccessfully to resolve their debt in other ways should Visit domain URL right away. Consulting with an experienced attorney is a good way to learn whether chapter 13, chapter 7 or some other option is right for any particular debt situation.
