Get Real Debt Relief, Not Promises
Some people with unmanageable debts are fearful of the bankruptcy system. Instead of filing bankruptcy, they try other means of debt relief such as loan modifications, debt consolidation and other debt workout schemes. These measures quite often fail to deliver results, and they can sometimes leave the individual consumer in worse financial shape than before.
Before you decide to pursue a debt workout scheme, talk with an experienced attorney.
At The Law Offices of John E. Mufson, we help people in South Florida get debt relief while protecting their assets. We use the bankruptcy system to protect the rights of our clients and prevent repossession, foreclosure and creditor lawsuits. In a free initial consultation, John Mufson can review your situation, answer your questions and provide the guidance you need.
Contact our firm to schedule your free consultation in one of our two convenient offices.
Learn The Facts About Debt Workout Schemes
While each method has its unique characteristics, debt workouts, loan modifications and debt consolidation plans all work on the same general principle. You negotiate a deal with your creditors to reduce the amount of money owed, reduce the interest rate, extend the loan period, or some combination of these. Even if a debt workout succeeds, you face some unpleasant realities:
- You will be taxed on the amount of debt that is forgiven.
- Your credit score does not improve during the workout period.
- After the debt is forgiven, your credit score will be ruined for up to 10 years.
- During the debt workout period, nothing prevents a creditor from filing a creditor lawsuit.
By contrast, filing bankruptcy protects you from creditor lawsuits, repossession and foreclosure. Your credit score actually improves 60-90 days after filing. You can get debt relief while keeping all or most of your property.
Debt workouts are typically employed by large corporations that undertake large-scale restructurings of their finances and operations. Debt workout schemes are not the best way for individuals and small-business owners to get relief from unmanageable debts.
Lake Worth Credit Card Debt Lawyer Serving South Florida
Bankruptcy is the best way to deal with unsecured debts such as credit card debts, medical bills and personal loans. Chapter 7 bankruptcy enables you to completely discharge these types of debts. In a Chapter 13, your remaining unsecured debts are discharged at the end of your repayment period.
Let Delray Beach debt relief lawyer John Mufson show you how you can get real debt relief.