You see them advertised all the time — debt consolidation plans promising to wipe out mounds of bills, putting you on easy street. But there’s no such place. The experienced bankruptcy lawyers at The Law Offices of John E. Mufson can help you decide if a debt consolidation program in Delray Beach is right for you.
Consider Looking into a Debt Consolidation Program in Delray Beach
You’ve seen the ads: “One low monthly payment.” Many of those companies promise to help get you a 0% credit card or low-interest rate credit card. But truth be told, in many cases, because you’re financially overwhelmed, and your credit score is likely tanking, you’re not going to qualify for such a debt consolidation. And studies show that most people end up running up debt again.
You need to be very careful about choosing to work with a debt consolidation company.
In general, we advise you to avoid them, and, instead, work with a nonprofit agency or a bankruptcy attorney, who can explain to you your options in handling your debt.
Here’s some information, in case you’re leaning towards bankruptcy. The two most common bankruptcy programs are Chapter 7 and Chapter 13. Here are the highlights of each one:
- Individuals and business can file
- Known as a liquidation form of bankruptcy
- Most of your property is sold and used to pay back your debts
- Aimed mostly at people with limited incomes who are not able to make minimal payments on their debts.
- It takes about three to five months to discharge the debt
- Individuals only (including sole proprietors) can file
- Known as a reorganization bankruptcy; no liquidation process
- Your property is not sold, and if you successfully complete a court-mandated repayment plan, you may be able to keep your property
- Typically takes about three to five years to discharge the debt
Don’t let massive debt and worrying about it, overwhelm you. The Law Offices of John E. Mufson has filed more than 2,000 bankruptcy cases in South Florida, and we are ready to help you. When you are ready to examine a debt consolidation program in Delray Beach, call us at (561) 272-1003 for a free consolidation.