It’s important to get independent debt advice to find out which debt solution suits you best. It could be as simple as organizing a budget or as involved as an administration order or individual voluntary arrangement.
Harrisburg PA bankruptcy lawyers can also help you value and protect assets, understand your state’s exemption systems and determine which debts will get wiped out or remain. They can also handle correspondence with debt collectors.
Bankruptcy
While it has a bad reputation, bankruptcy can provide debt relief to individuals who are struggling to pay their bills. If you are overwhelmed by credit card debt, personal loans or unpaid medical bills, a bankruptcy filing may be able to eliminate those debts and get your financial life back on track.
Individuals who do not qualify to file under Chapter 7 of the Bankruptcy Code may still be able to discharge their unsecured nonpriority debt by submitting a repayment plan to the court. To make a successful Chapter 13 bankruptcy filing, you will need to have sufficient current monthly income. Our lawyers will help you compile your financial records and develop a realistic, affordable repayment plan for your Chapter 13 bankruptcy case.
In addition to discharging your debt, a successful bankruptcy filing can also stop creditors from foreclosing on your home or repossessing your car. It can also prevent wage garnishment and halt creditor harassment.
Debt Consolidation
Debt consolidation methods like debt management plans, personal loans and 0% interest balance transfer credit cards allow you to roll multiple high-interest debts into a single loan with a lower interest rate. This can help you save on interest, simplify your payment schedule and pay off debt faster.
However, you should only consider debt consolidation if your income can comfortably cover your new monthly payments. Missing payments on a debt consolidation loan can damage your credit score and lead to added fees.
Before applying for a debt consolidation loan, assess your financial situation by making a list of all your outstanding debts. Make note of the balances, interest rates, minimum monthly payments and due dates. Also, check your credit scores and reports for errors that may be weighing down your score. This can help you determine which type of loan you may qualify for with favorable terms, such as a low interest rate. Then, gather your loan application documents to expedite the process.
Taxes
In addition to evaluating your debts, a bankruptcy lawyer can help you evaluate
your future financial goals and how a bankruptcy could affect them. For example, bankruptcy will have a permanent impact on your credit score, which could make it difficult to obtain loans or credit in the future. A bankruptcy may also prevent you from achieving your desired financial goals, such as purchasing a home or starting a business, if these are based on future income.
Bankruptcy stops creditor action such as wage garnishment and lawsuits, and a trustee will only sell off property considered essential to your daily living, such as a car or a portion of your home’s equity. It is important to understand that bankruptcy is not a quick fix, and a Licensed Insolvency Trustee will always explore alternative debt relief options before they recommend filing for bankruptcy. However, the benefits of filing can be significant and include a fresh start.
Medical Bills
Medical bills can be more challenging to pay than other types of debt, and are often more expensive. This is largely because many health care providers bill patients directly instead of through insurers, and billing errors are common. These mistakes can lead to overdue bills, which can eventually be sent to collections.
Even with recent modifications to credit reporting laws that offer some protections for consumers, medical debt in collections can be a major drag on your credit rating. To avoid that, be proactive about addressing your medical bills. Start by paying off your highest priority debts, which should include medical bills in collection. Next, consider a payment plan with the provider or hospital, which may be able to lower your monthly payments and spread them out over a longer term. You should also check to see whether financial assistance or charity care are available.
