Bowie, MD Debt Settlement Lawyer

Attorney Helping Clients Negotiate Debt Settlement to Avoid Bankruptcy in Bowie

It is all too easy for debt to build up until it seems you will never be able to catch up. Carrying credit card balances, medical debt for sudden illnesses or injuries, and student loan obligations can make it challenging to pay your rent or mortgage, cover other bills, and feed your family. As your various types of debt mount, so can your stress. You may get further and further behind on payments, and your creditors could harass you or threaten legal action. If you are under financial strain but do not want to file for bankruptcy, debt settlement could offer the relief you need.

As "the people's attorney," Attorney Hope Blocton of Bloc One Services, LLC understands the heavy burdens of financial difficulties. She knows that the same path to debt relief does not work for everyone, so she will work closely with you to explain the pros and cons of each option. If your situation and goals align best with debt settlement, she will do everything in her power to help you achieve a favorable outcome. Many attorneys charge overinflated fees, but you can rely on our top-notch representation at reasonable prices.

Debt Settlement vs. Bankruptcy for Bowie, Maryland Debt Relief

Although both bankruptcy and debt settlement are ways of managing debt obligations, they have significant differences. Debt settlement may be better for you if you have a steady income, your balances are not extremely high, and the number of open debt accounts is manageable.

With this process, Attorney Blocton will approach each of your creditors. She may ask for:

• More favorable repayment terms
• Forgiveness of at least part of your balance
• Payment arrangements

If negotiations are successful, and you fulfill your side of the agreement, your creditors should discharge the remaining balances and report to the credit bureaus that the accounts have been settled. This option may negatively affect your credit score, but the impact should not be as severe and long-lasting as filing for bankruptcy.

However, bankruptcy has some benefits over debt settlement. When you file for bankruptcy, an automatic stay takes effect immediately. This stay will stop creditors from trying to collect debts from you or taking legal action against you, such as repossessions, foreclosures, and garnishments. You do not have that legal protection with debt settlement. Ms. Blocton will thoroughly discuss your situation with you and help you determine which form of debt relief best meets your needs.

Chapter 7

If you file for Chapter 7 bankruptcy, your entire unsecured debt balance could be wiped out. However, you must pass a means test, and some of your non-exempt assets may be liquidated to pay your creditors. The process typically takes only a few months. Your bankruptcy can remain on your credit report for up to 10 years, and the adverse impact is worse than debt settlement.

Chapter 13

Chapter 13 bankruptcy is another option if you do not pass the Chapter 7 means test or if you have a large amount of secured debt. With this choice, you will restructure and reorganize certain debts. Instead of making multiple monthly payments to various creditors, you will make one payment to the bankruptcy trustee. The trustee will disburse payments to creditors according to an order of priority.

You will usually have three to five years to make the required payments. Upon successful completion of the repayment plan, any remaining balances on unsecured debts will be eliminated. Chapter 13 bankruptcy will lower your credit score, but it will only stay on your credit history for seven years.

Call Our Bowie, Maryland Debt Settlement Attorney

Everyone's situation is different. If you want to attempt to reduce your debt through settlement negotiations rather than filing for bankruptcy, Attorney Hope Blocton of Bloc One Services, LLC is a skilled negotiator. She is determined to help you secure the debt relief you need to rebuild your future. To set up your appointment for a complimentary case review, call us at 240-200-0076 or contact us online today.