Struggling to pay bills can lead to depression, divorce and other problems for a person without enough income to support their debt. Fortunately, there are solutions for debt problems and taking advantage of them early could even prevent some of the most common consequences of serious debt. Some of the solutions require filing official paperwork with the federal courts and attending hearings to discuss the debt. Others simply need an agreement with someone who is qualified to facilitate an agreement between a creditor and their customer. The best option for any particular person or couple will depend on the type of debt they have and how much income they have to repay it.
The solution that will cause the least harm to a person’s credit report is credit counseling. A bankruptcy lawyer in Hamilton, OH might suggest this to a client who only has a few debts and has enough income to pay them on an extended payment plan. Creditors are often willing to work with their customers if the debts have not already been sent to a collection agency.
Debt settlement is another solution that has offered relief for some people. This involves making an agreement with the creditor to pay a portion of the debt in a lump sum in exchange for the creditor forgiving the remainder of the balance. The most effective agreements are ones that the customer is able to immediately make the payment. If they take too long to send the funds to the creditor, they may cancel the agreement and take further collection actions.
Bankruptcy is an appropriate solution for people who can’t repay their debts. People who have lost their source of income, recently gotten divorced, or have acquired an insurmountable amount of debt may be a good candidate for bankruptcy protection. A bankruptcy lawyer in Hamilton, OH may help a client determine if this is the right solution for them and if it is, help them make arrangement to attend a credit counseling session and then file the necessary paperwork withe the court. People who are struggling to pay their bills should contact us to learn more about the solutions available to them.