Debt Consolidation vs. Settlement
Which is best for you?
If you are having trouble paying your credit cards and other debts but do not want to filebankruptcy you may want to consider either consolidating all your debts into a single payment you can afford or working out a reduced settlement with each of your creditors. These two approaches each have certain advantages and disadvantages and you should speak to an experienced bankruptcy attorney at Cain & Associates, PLLC to find out which method may be the best choice for you. While there are many companies who offer their services to either consolidate or settle your debts they are not acting as your legal representative. It is often a great advantage to have a lawyer work with your creditors to negotiate the best terms and to represent your best interests.
Debt consolidation means working to consolidate all of your debts into a single monthly payment, often at a reduced interest rate, that fits into your monthly budget. If you qualify, you may be able to get a bank loan, usually an equity line, to pay off all your debts and then repay the loan at a reduced interest. If you do not qualify for such a loan, we can work with each of your creditors to agree to settle your debt, usually for a much-reduced amount. This allows you to pay off each debt for a lower amount but means you will need to have cash on hand to make the settlement when it is offered. We can help you establish a separate account to save the funds you will need to make the settlements.
Preserving Your Financial Future
When you come to our offices we will provide you with a free financial consultation and explain the different options you have available. Your attorney will then work directly with each of your creditors on your behalf and you will no longer be contacted or harassed by them. We will explain the different tax consequences of consolidation and settlement and the amount of time necessary to settle your debts as well as the total costs and savings each method may provide you. Call our Nashville office today for more information and to schedule an appointment.