Indianapolis Bankruptcy Alternative Lawyers
Marion County Debt Settlement Attorneys Offering Other Approaches to Handling Debt
Bankruptcy represents one solution to the basic problem of having too many bills and not enough money to pay them.
At Redman Ludwig, P.C., we help individuals, families and businesses in Central Indiana solve their financial problems through bankruptcy. That said — it would not be fair of us to pretend that there are no other alternative solutions.
Consumer credit and debt counseling services can be a useful option if bankruptcy makes you uncomfortable or you are not quite ready to use the protections that bankruptcy affords. Many of these agencies will help you to set up a workable budget and payment schedule with your creditors. In our opinion, the services these agencies provide work best only when the problems primarily involve credit card debt. Also make sure the agency timely makes monthly payments or you will have a negative entry in your credit report each month,
If you decide to use the services of a consumer credit counseling service, be aware that it will have many of the same consequences to your credit rating as a bankruptcy but still require you to pay off your debts in full. You should also be aware that promises that sound too good to be true often are.
Debt Settlement Agreements
If you have some money available to give to your creditors now, debt management companies will reduce the amount of debt you owe through negotiation. However, consumer protection advocates warn that debt settlement is an area rife with scam artists and companies that charge prohibitively high fees. Because of this, it is important to research these companies thoroughly before you commit to using their services. Also consider that just like credit counseling, debt settlement has a negative effect on your credit.
BEFORE YOU TAKE OUT SECOND MORTGAGES OR 401(K) LOANS, TALK TO US ABOUT YOUR OPTIONS.
Debt Consolidation Loans
If you do not owe too much and feel that your debt would be manageable if you could consolidate it all into one monthly payment, a debt consolidation loan may be a good option. As with credit counseling and debt settlement, consolidation preserves your right to file a Chapter 7 or Chapter 13 bankruptcy later on. One word of caution: Debt consolidation can be a short-term fix that does not address any underlying problems. If you are honest with yourself and don't feel as though you can change detrimental spending habits — debt consolidation loans should be avoided.
Central Indiana Bankruptcy Solutions — Toll Free 866-660-6928
For more information on bankruptcy and home foreclosure alternatives — call our Indianapolis law offices directly or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.