When you are over your head financially, you have a few options open to you: you can struggle through it and continue drowning for years or even decades, you can file bankruptcy through the courts, or you can go through a debt settlement process and avoid the bankruptcy. Settlement takes three to five years, but it leaves bankruptcy open for you in case you need to file at a later time. The Law Offices of David Kohm can help you understand the process.
How It Works
- Working with an Arlington bankruptcy attorney, you essentially stop making payments on your debt.
- Monthly payments are directed into a special escrow account.
- Your lawyer will start contacting debtors to talk to them about negotiating your amount owed to a lesser amount.
- As agreements are reached, accounts are paid in full using the funds from the escrow account.
The entire process generally takes three to five years, and you will settle your debts for a discount of 50% or more.
You Must Claim Everything
In a bankruptcy, you have the option to keep certain bills or lenders out of the bankruptcy. This is not an option with a settlement. Lenders will pull your credit report, and if they see that you are making timely payments to another company, they will not be inclined to negotiate your debt with you.
Let Lawyers Handle All Contact
The phone calls from collection agents during this time can become intense. It’s important that you let your attorney handle all contact with debtors. Your counsel will negotiate the settlements, keep you informed of the progress, and work as a mediator between you and all your debtors.
Settlement is an attractive alternative to filing for bankruptcy. It’s not the easiest process, but it does allow you to get out from under your debts legally and without actually going bankrupt. Your accounts will be closed in the process, but you can open new accounts after you have successfully completed the program.
Call the Law Offices of David Kohm at 817-204-0900 to learn more about the attractive benefits of settlement programs.
