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Are There Any Alternatives To Eliminate My Credit Card Debt?

New York Bankruptcy Attorneys Can Help

There are several alternatives to filing for bankruptcy. Some of these options may be best for your unique financial hardship, so we’ve included some viable alternatives below. If you are thinking about filing for bankruptcy, modifying your mortgage, or are facing overwhelming credit card or student loan debt, Law Office of Simon Goldenberg can help you. Our experienced attorneys will thoroughly review your situation and advise you on available solutions. To get in touch with Law Office of Simon Goldenberg, call (888) 301-0584 or contact us online.

Request A Lower Interest Rate

Sometimes, your monthly payment amount is achievable until loan agencies hit you with a high interest rate. A high interest rate will cause your monthly minimum to skyrocket. You can always ask for credit agencies to reduce your interest rate, or you can ask if you can switch to a different plan. Some plans have fluctuating interest rates, while others have consistent interest rates. Also, some creditors will only charge you interest after a certain period, while others will charge you interest throughout the duration of your loan. You must read the fine print and know which interest rate plan you’re signing up for.

Request Lower Monthly Payments

Perhaps your monthly income is subject to change. That change may be a reduction if you lose your job or take a pay cut. You can contact your creditors, show them proof of your income reduction, and request a lower monthly payment when this happens. Also, you can include any other creditors you owe to show that you’re paying out more than, say, $400 a month to one loan agency -- you’re paying $950. Usually, creditors are sympathetic and may work with you to reduce your monthly payment to a figure that’s more doable.

Seek Credit Counseling

It’s always in your best interest to speak with a credit expert about your credit report. You should know your credit score and what items on your report hinder you from having a good credit score. If you’re able to work with a loan agent to work out a plan, you may be able to put yourself in a more stable financial situation. Thus, you wouldn’t need to file for bankruptcy or seek an alternative.

How Can A Bankruptcy Lawyer Help Me?

You may wonder, “Why should I hire a bankruptcy lawyer if I’m searching for alternatives to filing bankruptcy?” The truth of the matter is that few people are more equipped to assess your needs and offer expert advice than a New York bankruptcy lawyer. See below for a quick list of how a bankruptcy lawyer can help you find alternatives to getting rid of your debt.

Know Your Options

Bankruptcy is a well-known resolution to having a financial crisis. Hundreds of thousands of Americans file for bankruptcy each year. Perhaps, fewer people would file if they knew about other options. A bankruptcy lawyer understands not only the specifics of which bankruptcy chapter is best for you, but also knows when bankruptcy is least advisable for your unique hardship and can tell you which alternatives are more suited to your circumstances.

File Correctly And Timely

Unfortunately, many people who file for bankruptcy see their applications dismissed or delayed. Either dilemma can occur when you file something incorrectly: forget necessary documents and evidence of your hardship or miss the deadline for due dates. Not to mention, a miscalculation or misquoting of the value of your assets or debt can result in a judge finding that you committed fraud against the court. Such a finding comes with a slew of issues, including the fact that you may not be able to file for hardship relief again for a certain period.

Thankfully, a reputable lawyer pays close attention to which documents the courts need and works diligently to see that all your paperwork is filed on time.

Negotiating Settlement Reductions

As you know, filing for Chapter 7 bankruptcy means that you’re liquidating your assets so that you can pay off your creditors with the funds from the liquidation. Filing for Chapter 13 bankruptcy means that you’re working out a three-to-five-year payment plan to pay off your creditors. So, if you have the assets to file for Chapter 7 bankruptcy or expect to have future earnings to get on a payment plan for Chapter 13, your lawyer can help you in negotiating a settlement reduction.

What does a settlement reduction look like? You can sell some of the assets of your choice and use that money to pay a creditor a lump-sum amount. You can look forward to this lump-sum amount being less than your initial total. For example, suppose you owed a creditor $87,000. You sell some of your property and profit $65,000. In this case, your lawyer will negotiate with your creditor to accept this reduced amount as the full payment. Your creditor’s benefits are that the money is guaranteed, and they no longer have to stress about minimum monthly payments.

Why Choose Us?

The lawyers at Law Office of Simon Goldenberg are a step above the rest. We are one of the best New York bankruptcy law teams that you’ll find. You may read our client testimonials to see so for yourself. We even operate out of Brooklyn to be more accessible to the residents of The Empire State. Not to mention, we offer a free review of your collection letter. For a free initial evaluation, contact us at (888) 301-0584 or contact us online.