ASM Law – Call 847-231-3999 – Debt Relief Elgin IL
Are you struggling to make progress when it comes to paying own your debts, regardless of how hard you keep trying? If that is the case, you may well be facing overwhelming debts. ASM Law is a debt relief agency under the U.S. bankruptcy code. Call our offices today for information on how we can help you turn your financial situation around.
To start making real progress against such a financial challenge consider the debt relief options available to you. There are ways to change payment terms or even the amount of debt so you’ll regain your financial footing. However, debt relief plans are not necessarily right for everyone. Plus, it’s important to be aware of the possible consequences.
Debt relief may entail wiping out your debts altogether through a bankruptcy filing. Or, it may involve changes to your interest rate or repayment schedule to lower the payment. Persuading your creditors to accept a lesser than the total amount you owe could also be a possibility.
When to consider seeking Debt Relief Elgin IL
Consider filing for bankruptcy, debt settlement or a debt management plan if any of the following are true:
-There is no possibility you’ll be able to pay your unsecured debts within the next five years. This would include debts like personal loans, medical bills or credit cards.
-The total sum of your overdue, unsecured debts is equal to 50 percent or more of your income. Alternatively, if it’s possible to pay your unsecured debts within five years, a do-it-yourself payment plan might work. That would include a combination of consolidating debt, communicating with creditors and strict budgeting.
Debt Relief Elgin IL – ASM Law – 847-231-3999
Unfortunately, a segment of the debt relief industry includes scam artists looking to seize what little funds you may have. Many who start debt relief plans fail to finish them. There’s a risk you might wind up with debts that are even deeper than when you began.
On the bright side, real debt relief can provide you with a fresh start and an opportunity to make progress.
Be sure you fully understand and confirm the following points before starting a debt relief program:
-What you’ll need in order to qualify.
-What fees you’ll pay.
-Which creditors will be paid.
-How much the creditors will be paid. If your debts are in collections, make sure you know who owns it so payments go to the correct agency.
-If there are tax implications.
Bankruptcy and Debt Relief
There’s no point in starting a debt settlement plan if you won’t be able to make the agreed upon payments. To that end, it’s wise to consult with a bankruptcy lawyer at ASM Law. Legal advice before you decide upon a debt relief Elgin IL plan is very useful. Our law firm has years of experience helping people in situations similar to yours. We can recommend practical options that will help you get out of debt and into a much stronger financial position.
Chapter 7 liquidation is perhaps the most common form of bankruptcy. It can eliminate most credit card and medical debts along with unsecured personal loans. For those who qualify it’s possible to complete within a few months.
Call ASM Law if You’re Struggling with Debt – A Debt Relief Plan can Restore Your Financial Condition
Here are a few key points to know about Chapter 7 Bankruptcy:
-It does not eliminate taxes you owe or child support responsibilities. In addition, a Chapter 7 filing is not likely to eliminate student loan debts.
-Filing for bankruptcy can adversely affect your credit score, as it remains on your credit report for up to ten years, even as you work on rebuilding your credit history.That’s not a minor consequence because poor credit history can impede your eligibility for employment. Poor credit can even make it difficult to lease an apartment and increase what you pay for auto insurance. When your credit score is poor already, a bankruptcy may enable you to improve it sooner than continuing repayment might. (Talk your lawyer to determine if bankruptcy may be your best option.)
In the event you use a co-signer, your filing for bankruptcy would make that person responsible for the debts. If debts keep growing, you cannot file for Chapter 7 bankruptcy again for several years.
It might not be the best option if you would need to relinquish property you want to retain. Generally, certain types of properties are exempt from a bankruptcy filing. For example, vehicles up to a certain value and portions of the equity in your house. Usually, you would have to give up things like a second vehicle or a vacation home.
In some cases, people are “judgment proof.” Basically, that means they do not have income or possessions that creditors can pursue. The creditors may still obtain a judgment, but they will not be able to collect anything.
Call 847-231-3999 for a Consultation with ASM Law – Talk to Debt Relief Experts
It is important to note that not everyone with debt can qualify for Chapter 7 bankruptcy. If you have a residence you hope to save from foreclosure, Chapter 13 bankruptcy might be the better choice. Likewise if your income is higher than the median income in Illinois. Chapter 13 bankruptcy is a 3 or 5-year repayment plan that the court approves. It is largely dependent upon factors like your debts and your income. If you can follow the repayment plan to its completion, your remaining unsecured debts are discharged. Chapter 13 generally takes more time than Chapter 7. However, if you can make the payments (which can be difficult) you will be able to keep your home. A Chapter 13 bankruptcy remains on your credit reports for seven years from the date of filing.
Relief through a debt management plan
A debt management plan enables you to pay off your remaining unsecured debts which are usually credit cards. Often, you’ll be able to pay them off a lower interest rate. You submit one payment per month to your credit counseling agency. The agency distributes the payment to your creditors. Credit counseling agencies and the credit card companies have agreements to assist people on debt management plans.
Your credit card accounts will close and you’ll likely need to adapt to life without them until completing the plan. While being on a debt management plan doesn’t affect credit scores, closing credit card accounts can impact them. After successfully finishing the debt management plan, you’ll be able to apply for credit cards again.
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Failing to make payments can invalidate your debt management plan. It’s important to choose an accredited agency. Even then, be sure you know what the fees will be and what your alternatives may be for handling creditors.
When it comes to debt settlement, it is usually not the right solution for most people. Bankruptcy is in most cases the better option for getting out of debt. Settlement may be an option only for those facing large debt who can’t qualify for a bankruptcy filing.
Debt settlement companies frequently will ask you to cease payments to your creditors. Instead, they’ll want you to deposit the money into an account under their control. The risk of receiving nothing might prompt the creditor into accepting a lower lump-sum payment. Hopefully, they will agree to stop pursuing you for the remaining amount.
Debt settlement does not put an end to collection calls and letters from creditors.
Expect at least a few months to pass until the settlement offers start. Depending upon the amount you owe the process might last for years.
Talk to ASM Law today about debt relief that can work for you – call 847-231-3999 for a consultation.