Individuals struggling through financial difficulties will often search out options before seriously considering filing for bankruptcy. Unfortunately, there are numerous organizations that provide minimal relief while exposing clients to serious consequences in the process.
When you are considering your options to create a more stable financial future, do not hesitate to schedule a consultation at Rauser & Associates Legal Clinic LLP. We will carefully examine your financial situation and provide the honest assessment you need to make a well-informed decision.
Helping You Understand The Consequences
Our lawyers fully understand that filing for Chapter 7 or Chapter 13 bankruptcy is not the best option for many individuals. Having said that, we believe that people should be aware of the possible consequences of avoiding bankruptcy. While each situation is different, there are numerous bankruptcy alternatives that many individuals consider, including:
- Out-of-court settlement: Rather than file bankruptcy, you may attempt to settle your unsecured debt at a reduced amount. It is unlikely that you could do this independently, but there are companies that will help you negotiate with your creditors. It is important that these negotiations are handled properly so you should seek professional help. These actions can ultimately have a negative effect on your credit rating.
- Debt counseling service: Debt counseling services can be a start in helping you deal with your financial difficulty. These services typically work to consolidate your payments and may work to reduce your payments or interest on your loan. But it can be difficult to qualify for debt counseling. If your debts are significant, a debt counseling service may not be able to improve your debt situation.
- Debt consolidation loans: Another option is borrowing against the equity in your home to pay down credit card debt. This, of course, requires home equity and a careful consideration to make sure you are not putting yourself in a worse position. Not being able to pay your home equity loan could leave you worse off than not being able to pay your credit card debts.
Beware Of Refinancing
If you have equity in your home, you can file Chapter 13, protect your equity and repay your mortgage arrears over time. Refinancing or taking out a second mortgage may just create an additional mortgage payment that you cannot afford. You should explore all your options and make sure you contact Rauser & Associates Legal Clinic LLP along the way so we may advise you of your legal rights.
Legal Advice To Help You Make An Informed Decision
If you have further questions about filing Chapter 7 or Chapter 13 bankruptcy, schedule a free case evaluation with one of our attorneys by sending us a message or calling 888-843-5787. We have offices in Columbus, Cleveland, Akron, Youngstown and Canton and throughout Ohio.
