Looking for Bankruptcy Alternatives?
Our Lewisville Attorneys Explain What to Know About Debt Settlement.
Some people who find themselves in over their heads with debt have many reasons to believe that neither Chapter 7 or Chapter 13 or Chapter 11 bankruptcy is best for them. Chapter 7 and 13 are mostly for personal debt problems or businesses with limited debt. Chapter 11 on the other hand, needs to be initiated when creditors have filed lawsuits to collect debts, and this takes place when a business has dug itself deeply into debt sometimes to the point where only dissolution of a business will assist.
Most individual debt, or smaller debt by businesses can profit from Chapter 7, but in many cases, that is not even necessary as debt settlement can be a faster, quicker, and less stressful approach than bankruptcy.
Perhaps Too Many Exemptions Apply in Your Particular Circumstances.
If your financial situation does not make bankruptcy feasible, you may be able to seek debt relief in the form of debt settlement. With the help of an experienced lawyer, you can negotiate with your creditors, who may agree to lower the amount owed, reduce, or eliminate interest and/or lower payments over a timeframe.
There Are Many Misconceptions Regarding Debt Settlement.
Individuals who find themselves in debt, and even businesses can seek out debt consolidation solutions which are entirely different from debt settlement agreements. Debt consolidation is strictly what the term implies, the consolidation of debts by a company, generally a private one, that will for all intents and purposes take on all your debt into one large lump sum debt. While commercials abound promoting these services, they might not assist at all or can even compound the problems of incurred debt, as although payments are lower each month, there are fees tacked on, and you pay for a longer time. It stops the debt collection agencies harassment and can help restore your credit rating if you make the payments on time, but as a long-term solution it should not be the first choice. Simply put, debt consolidation is defined as a loan which is taken out to pay off many other debts and loans. Student loans are oftentimes subject to consolidation.
Debt settlement is a “horse of a different color” and a great alternative many times to bankruptcy and debt consolidation. Debt settlement is sometimes referred to as debt negotiation, and it is where creditors agree to reduce the amount owed on unsecured debt, whether business or personal. It can be a way to avoid bankruptcy and consolidation. An attorney that specializes in debt settlement such as Shuster Law PLLC should be consulted and retained if choosing this as it can be a tricky process to navigate on one’s own.
To discuss bankruptcy alternatives, including debt settlement, schedule a free, face-to-face, or virtual initial consultation at the law offices of Shuster Law PLLC, in Lewisville, Texas. Call (972) 315-6222 or fill out our free, confidential online debt review form. No documents are needed for the first meeting, so that we can get started working towards getting your debt back under control as soon as possible.
How is Debt Settlement Different from Bankruptcy?
Both Chapter 7 and Chapter 13 bankruptcy offer debt relief by allowing you to pay your creditors little or even no money and then discharging the rest of your debt through a court order. Debt settlement does not involve going to court, but instead is based on direct negotiations with your creditors. With the help of a Lewisville lawyer, you may be able to negotiate a more reasonable payment plan or even a lower payment overall.
You can stop creditor harassment when you choose to pursue debt settlement. Our Lewisville lawyers can send each one of your creditors a letter notifying them of our representation, just as if you were filing bankruptcy. According to the Texas Fair Debt Collection Practices Act (FDCPA), once you retain an attorney and the creditors are notified of that fact, they are not allowed to contact you directly. All communications must go through your Lewisville lawyer, meaning you no longer deal with the creditors on your own – they must go through us, and we know HOW to deal with creditors.
How Can Debt Settlement Lawyers Help Me Avoid Bankruptcy?
Working with a Lewisville lawyer may give you more leverage and indicate to the creditor that you have considered bankruptcy as an option. Creditors are often willing to work with those seeking debt settlement to recover some of what they invested by lending money. At the conclusion of debt settlement negotiations, you may end up with documentation from creditors verifying a reduction in the total amount you owe that can be for pennies on the dollar. In some cases, with small amounts owed, creditors can just walk away from the debt. It is not frequent, but it does happen!
Shuster Law PLLC
David Shuster is a native Texan, born and raised in Arlington, studied Economics at UNT, then law in Fort Worth at Texas A & M University School of Law, and has been a member in good standing with State Bar of Texas since November of 2002.
Learn More About Debt Settlement in a Free Review with Our Lewisville Attorneys.
At Shuster Law PLLC, we are committed to helping Lewisville families reclaim their financial independence through debt settlement and bankruptcy. Experienced Lewisville debt relief attorney David Shuster devotes most of his practice to bankruptcy and debt settlement law and has the experience you need on your side when you go up against tough creditors.
Settle your debts legally and affordably through debt settlement negotiations. Our past clients include residents of the Dallas/Fort Worth metroplex with offices located in Arlington, Fort Worth, Flower Mound, Dallas, Denton, and Lewisville. Let Shuster Law PLLC help you recover now from debt and build a solid financial future.