There are approximately three ways people deal with their debt. They either file bankruptcy, find ways to repay the debt or attempt to ignore the problem. It is tempting to turn off the phone and throw out the letters and pretend the problem does not exist. Unfortunately, there will come a time when it is no longer possible to ignore debtors. Here is a more detailed look at the pros and cons of these three options.
Ignoring the Debt
Continuing to send minimum monthly payments and allowing late charges to accumulate on unpaid bills will consistently lower credit scores as the debt increases. Eventually, people using this method will lose their homes, lose their vehicles and have their wages and bank accounts garnished. It is stressful and embarrassing to most hardworking individuals to admit in small claims court that they cannot afford to make their payments.
Repaying the Debt
Repayment plans only work if people can afford to follow them. In many instances, they do not reduce the monthly debt enough to make them feasible. If an emergency occurs and a payment is late, the debtor could drop the agreement and return to their collection processes. Debt consolidation companies are not always able to provide any additional help and some of them not very reputable. Even worse, most people will not see an improvement in their credit score once the debt is finally repaid.
Filing for Bankruptcy
Bankruptcy Lawyers in Tallassee AL are aware of the stigma attached to bankruptcy. However, it is important for everyone to realize that this is a much more private process than many people think. Most people that file are able to keep their home and their vehicles and their credit scores will usually begin to improve within a year after the bankruptcy is filed.
The best solution for everyone is to end this problem as soon as possible. Bankruptcy Lawyers in Tallassee AL make this simple and fast. Within a matter of months, many people are clear of their previous debt and able to have a new start. Others have reduced the amount of debt they own and have access to a lower repayment plan than what would have been accepted during a debt consolidation. Contact Courtney & Mann LLP to learn more.