Opting for Debt Relief or Bankruptcy in Florida
Many Florida residents struggle with whether or not they should declare bankruptcy. Bankruptcy should never be taken lightly, but if you have escalating debt and no way to pay it off, then often bankruptcy is your only viable option.
However, many people also investigate other choices, such as debt relief services. There are benefits to debt relief services, and one of the primary ones is that often you are able to rebuild your credit faster due to the fact that you have paid down your debt, rather than declaring bankruptcy.
Collecting Information
Debt relief involves the debtor gathering together information on their unsecured debt. Usually this is primarily credit card debt. Once you collect and organize the information, which includes your latest statements from each creditor, that’s the time to contact debit relief organizations.
In contacting them, you’ll want to explain your situation with them, give them your debt information, and find out what sort of plan they can put together for you. You should speak to various providers and compare services and offers.
Things to consider when choosing a debt relief agency include:
- What are their fees? Are they reasonable?
- How long have they been in the business of debt relief?
- What sorts of free tools do they offer? Do they have budget planning software, debt monitoring capability, and other types of basic services that will help you?
- How good is their customer service? Will you be assigned a specific person with whom you will work and who will know your situation?
One very important consideration will be the monthly amount the debt relief agency calculates you’ll need to pay and how long it will take you to pay off your debt.
How Debt Relief Works
When you work with a debt relief company, they will contact your creditors. It’s important to realize that these companies cannot help you with tax payments, mortgages, car loans, or other such debt issues. When they contact your creditors they will arrange a specific monthly payment with them and get the company to eliminate fees and either eliminate or greatly lower interest rates.
Usually, the debt relief agency will want to have the monthly amount you’re to pay taken from your bank account either once or twice a month. That money is sent to the agency and the agency sends payments to each of your creditors. In order to stay in the debt relief program, you will need to make timely payments. Most credit card companies will only allow you to miss one payment before they remove themselves from the program. If that does occur, often the agency can contact them and, depending upon the company, get them to give you one more chance to meet the repayment requirements, or they will negotiate a new payment agreement.
It is important that debtors monitor all statements from their creditors to make sure that they are being properly credited, that the interest rate is correct, and that no fees are being assessed. Whenever there is a discrepancy, you should contact the debt relief agency, and they will contact the creditor.
When Bankruptcy is Appropriate
Debt relief can be a viable option for many in Florida; however, if you are unable to meet the required monthly payments such a program is not for you. Payments for such programs tend to be reasonable, and an inability to meet the payment schedule may be a good indication that you’re a candidate for bankruptcy. How do you know for sure? The best thing for state residents to do is to contact a Florida bankruptcy attorney who will be able to review all of your information and counsel you on what is the best path for you.
Making a Choice
Being in serious financial debt can be very frightening and overwhelming, but you are not alone. If you are considering bankruptcy in Florida, we can help you review your financial options. Please contact The Law Office of Kelley & Fulton, P.L. at (561) 419-9598. We have over 25 years of experience helping people just like you in the West Palm Beach area.
However, many people also investigate other choices, such as debt relief services. There are benefits to debt relief services, and one of the primary ones is that often you are able to rebuild your credit faster due to the fact that you have paid down your debt, rather than declaring bankruptcy.
Collecting Information
Debt relief involves the debtor gathering together information on their unsecured debt. Usually this is primarily credit card debt. Once you collect and organize the information, which includes your latest statements from each creditor, that’s the time to contact debit relief organizations.
In contacting them, you’ll want to explain your situation with them, give them your debt information, and find out what sort of plan they can put together for you. You should speak to various providers and compare services and offers.
Things to consider when choosing a debt relief agency include:
- What are their fees? Are they reasonable?
- How long have they been in the business of debt relief?
- What sorts of free tools do they offer? Do they have budget planning software, debt monitoring capability, and other types of basic services that will help you?
- How good is their customer service? Will you be assigned a specific person with whom you will work and who will know your situation?
One very important consideration will be the monthly amount the debt relief agency calculates you’ll need to pay and how long it will take you to pay off your debt.
How Debt Relief Works
When you work with a debt relief company, they will contact your creditors. It’s important to realize that these companies cannot help you with tax payments, mortgages, car loans, or other such debt issues. When they contact your creditors they will arrange a specific monthly payment with them and get the company to eliminate fees and either eliminate or greatly lower interest rates.
Usually, the debt relief agency will want to have the monthly amount you’re to pay taken from your bank account either once or twice a month. That money is sent to the agency and the agency sends payments to each of your creditors. In order to stay in the debt relief program, you will need to make timely payments. Most credit card companies will only allow you to miss one payment before they remove themselves from the program. If that does occur, often the agency can contact them and, depending upon the company, get them to give you one more chance to meet the repayment requirements, or they will negotiate a new payment agreement.
It is important that debtors monitor all statements from their creditors to make sure that they are being properly credited, that the interest rate is correct, and that no fees are being assessed. Whenever there is a discrepancy, you should contact the debt relief agency, and they will contact the creditor.
When Bankruptcy is Appropriate
Debt relief can be a viable option for many in Florida; however, if you are unable to meet the required monthly payments such a program is not for you. Payments for such programs tend to be reasonable, and an inability to meet the payment schedule may be a good indication that you’re a candidate for bankruptcy. How do you know for sure? The best thing for state residents to do is to contact a Florida bankruptcy attorney who will be able to review all of your information and counsel you on what is the best path for you.
Making a Choice
Being in serious financial debt can be very frightening and overwhelming, but you are not alone. If you are considering bankruptcy in Florida, we can help you review your financial options. Please contact The Law Office of Kelley & Fulton, P.L. at (561) 419-9598. We have over 25 years of experience helping people just like you in the West Palm Beach area.
