Bowie Personal Loan Debt Lawyer

Skilled Attorney Helping Address Personal Loans Through Bankruptcy in Bowie, MD

Unsecured personal loans are a popular type of funding that people can use to consolidate other types of debt, make large purchases, or pay for unexpected but necessary expenses. Although a personal loan can solve short-term problems, making on-time payments can be challenging if your monthly cash flow is disrupted by unanticipated circumstances. A creditor may threaten to take legal action against you or otherwise harass you. Personal loan debt relief through bankruptcy may be the best way to turn your financial setbacks into comebacks.

When you partner with Bloc One Services, LLC, Attorney Hope Blocton will work closely with you to understand your situation. This extensive preliminary work enables us to provide the most effective suggestions for your debt relief solutions. We provide high-quality legal services to our community, and we will not charge you an arm and a leg. We serve Montgomery, Prince George's, and Charles Counties and areas in Maryland, along with Washington D.C. Request your complimentary consultation today to get started.

Discharging or Restructuring Personal Loan Debt Through Bankruptcy

Lending sources for personal loans may include family or friends, banks, credit unions, employers, peer-to-peer networks, or online lenders. Depending on several factors, personal loan repayment terms can vary, with most being between 24 to 84 months. Although interest rates for these loans are typically lower than those for credit cards, many come with substantial origination fees. Monthly payment amounts are usually much higher than credit card minimums, as well.

If you are struggling to pay your bills, it can be very hard to make these loan payments on time. Because most personal loans are unsecured, the lender cannot threaten to repossess any collateral to recover their money. If you are faced with the choice of making either your car or loan payment, the car payment is the obvious choice.

Whether you obtained a personal loan through a formal legal contract with a financial institution or an informal agreement with someone who lent you the money, you can seek debt relief for that loan through bankruptcy. As soon as you file, an automatic stay goes into effect. This will prevent your creditors from taking any kind of action to collect the amount you owe. They also cannot contact you regarding your debt.

Chapter 7

Most people who want to eliminate unsecured debts, including personal loan balances, typically choose to file for Chapter 7 bankruptcy if they meet the eligibility criteria. With this type of bankruptcy, discharging your eligible debts means you will no longer owe those amounts.

Chapter 7 is much faster than Chapter 13, but you may have to give up some of your assets. Liquidation of those non-exempt assets would repay a portion of your debts. Your attorney will work to help you keep as many of your assets as possible.

Chapter 13

If you do not qualify for Chapter 7, Chapter 13 bankruptcy may provide the debt relief you need. With this type of filing, you can keep all of your assets. You will be able to make one monthly payment, which is easier to manage than making several minimum payments to different creditors. The total amount you pay back is often only a portion of the full amount owed.

You can include personal loans and other kinds of debts in your Chapter 13 filing, and you usually have three to five years to complete your repayment plan. Any balances on unsecured debts that remain after you finish those payments will be discharged, leaving you with a clean slate.

Call Our Bowie, Maryland Personal Loan Debt and Bankruptcy Attorney

Living with constant financial strain can be brutal. Let Bloc One Services, LLC help you regain your footing and rebuild your future by filing the right kind of bankruptcy for you. Contact us online or by calling 240-200-0076 to set up an appointment for your free case review today.