When it comes to dealing with huge debts, filing for bankruptcy can be the most viable option as this will propel you in the right direction. For example, if you are supposed to pay a debt of $50,000, then either you will need more than 10 years or you won’t be able to pay. But by filing bankruptcy, you can find a way out to deal with this. That is why our Pittsburgh bankruptcy lawyer recommends you get a consultation.
There are many unsecured debts like medical bills, credit card bills, and so on that can take years to pay back. And when you pay for that, your regular payments for utility bills, buying a home, preparing for the education of your children can become impossible. Filing for bankruptcy will give you a fresh start by eliminating your unsecured debts. Once you get the discharge, you can carry on with your regular payments of secured debts and utility bills.Debt Consolidation Program
Over the past few years, there are many debt consolidation programs that have emerged and become popular for debtors who are dealing with unsecured debts and daunted to file bankruptcy. One of the reasons is that these programs make the debtors feel that the debts are paid while managing their finances. However, these programs come with hundreds of disclaimers that precisely tell you that they are not suitable options.
These types of programs don’t allow the debtors to get into negotiations with the creditors which can allow the debtor to avoid paying hefty amounts and settle for lesser ones. And more importantly, all creditors won’t be willing to participate in the debt consolidation program. Now, while pursuing the debtor, these unwilling creditors might sue them too. Hence, you as a debtor will have to pay the amount and get sued all at once. That is why filing for bankruptcy is a way better solution. While chapter 7 will eliminate most of your debts, chapter 13 will offer you a restructured repayment plan that will help you stabilize your finances. And your creditors won’t be at liberty to pursue you, your spouse, and in some cases your co-debtors. That is why our Pittsburgh bankruptcy lawyer always suggests you avoid these programs.Can Debt Consolidation Program Hurt Your Credit?
Even though the debt consolidation programs claim to be not harmful to your credit history, the reality is different. These programs won’t address all your creditors. And that is why even when some of the creditors will become delinquencies, others might end up filing lawsuits against the debtor. These lawsuits can potentially force the debtor i.e. you, to file for bankruptcy even when you have paid a fortune for your debts.
Also, in terms of accountability, the credibility of these programs is not that good as most of them operate virtually. You don’t get to meet them and discuss your unique financial issues.
That is why you need to come to our Pittsburgh bankruptcy lawyer to know if you should file bankruptcy or not. We, at Pittsburgh Bankruptcy Law Group, are here to help you.