If your debts are piling up and you’re trying your best to stay current on them but simply can’t, you might want to look in to various forms of debt consolidation. Ways to do this include taking out a loan, moving all debts on to a single credit card, or consulting with a bankruptcy attorney about the best way to go about consolidating your debt. Taking out loans or putting all debts on to a credit card are going to cost you more in the long run, as you’ll not only be paying the debts with this money, but you’ll also be paying interest when making payments on the loans or card. By going through a bankruptcy attorney, you can eliminate any interest and only pay back the exact amount of money you actually owe. There are a couple of ways to do this.
A common way to utilize debt consolidation is to file for chapter 128 debt consolidation. It may sometimes be referred to as bankruptcy, but it actually isn’t, so you won’t have to worry about such a thing appearing on your credit report. Under chapter 128, your debts will be rolled all in to one and you will make one monthly payment that will cover them all. In some cases this payment can be taken directly from your paycheck, or you might be given the opportunity to simply make the payments yourself. You’ll typically be given three years to pay off the entirety of the debt owed, allowing you much more time than an individual creditor is likely to give you. Chapter 128 also covers utility bills that are past due and can prevent companies from shutting off things such as your electricity.
A second way to utilize debt consolidation by working with a bankruptcy attorney is to file chapter 13 bankruptcy. This is an actual bankruptcy that will appear on your credit report, however it is also considered a repayment plan rather than a forgiveness of most debts. Under a chapter 13, there are some debts that can be included that would not be covered under a chapter 7, such as back child support, since you’ll actually be making payments on these debts and not having them simply erased. In many ways it is similar to chapter 128 with the big exception being that it is a true bankruptcy. You’ll need to work with a good bankruptcy attorney to determine which plan is the best one for you to go with, but either way your attorney will be able to help you structure a payment plan that works best for you and your situation. A chapter 13 will allow you a bit more time to make your payments (up to five years) if that’s what you need. Speak with an attorney today to determine the proper route to follow.
