Have you ever thought about filing bankruptcy? If you have, then you are most likely having considerable issues with your finances. But while you may be eligible to file bankruptcy, that doesn’t necessarily mean that you should.
When you file bankruptcy, your attorney makes a great deal of money off of you. Yes, your fees cover court costs, but a majority of the money is the attorney fee. Bankruptcy is very easy for an attorney to file. In fact, the process is not that difficult and is why many individuals will opt to go bankrupt before they choose any other option.
The downfall of bankruptcy, however, is the fact it remains on a person’s credit report for 10 years. Yes, we’ve all seen our bankrupt friends in Pennsylvania acquire homes or cars after filing bankruptcy, but do you know how much more those things are costing them? They are paying thousands of dollars more in interest rates and fees to have credit again.
But it is the simplicity of bankruptcy for all parties, resulting in a bankruptcy lawyer not telling you of the other options available to you. It’s about time you know what a Pennsylvania bankruptcy lawyer won’t tell you about debt relief. Debt relief is the alternative, and it is an effective one.
Why Attorneys Don’t Touch Debt Relief
There are Pennsylvania attorneys that provide debt relief services. What they do is call creditors, work out settlements with them, and then they combine all of the payments into one for you so that they can then divide it among your creditors each month. In other words, they work the same way a debt consolidation company that uses settlements does.
But what a Pennsylvania bankruptcy lawyer won’t tell you about debt relief is that it can be done. They offer the service for those refusing to file bankruptcy, but their fees are out of this world. They won’t tell you that you can have the same result through a debt relief company in a way that is more affordable. It is also possible for a debt relief company to achieve better results because debt settlement is the only area they work in.
Attorneys are very busy with their cases, so they cannot concentrate on debt settlement as heavily as they need to and they may not be able to achieve the best result. Because of this, you could find yourself in a 3 to 5 year monthly pay back schedule that is still too high. If something would happen that the attorney’s office would default on just one payment, that account reverts right back to the way it was with interest accruing.
It is because of the technicalities that attorneys do not usually touch debt relief. They will look at you and tell you that you should file bankruptcy. First, they do get a lump sum of money faster and, second, bankruptcy takes less of their time. In the end, they make more money for less work.
What Attorneys Won’t Tell You
Of course, not all attorneys work the way that was described above. There are those that are concerned about helping others achieve financial independence without placing a bankruptcy on their credit report for 10 years, but these are the guys that do not have many other cases and they have the time to kill. They are far and in between.
Typically, what a Pennsylvania bankruptcy lawyer won’t tell you about debt relief is that it is fast. Settlements can be in place very quickly. Payments can be negotiated to an amount that you can afford. Before a proposal for settlement is ever sent to a creditor, your income is reviewed and it is determined what you can afford.
From there, you do remit a single payment each month to your Pennsylvania debt relief company and you can count on it being paid on time. Of course, an attorney isn’t going to tell you that it is possible for them to miss making your payments. They are usually not as automated and organized as debt relief companies due to lack of software and/or manpower.
Lastly, your fee is going to be lower with a debt relief company and the fee is divided among your payments so that you hardly notice it’s there. These companies can afford to charge lower fees for the fact they serve so many clients. Attorneys’ offices do not serve as many debt settlement clients. Their focus is bankruptcy.
So if you don’t want bankruptcy plaguing you for ten years and you once again want to see on-time payments recorded on your credit report, debt settlement through a debt relief company may be for you. When you choose this option, you can have 3 to 5 years of on-time payments on your credit report, which will give you a good starting point after the program. This is much better than a public record on your credit report for 10 years and interest rates that steal money out of your pocket.
To get started, obtain a free debt analysis by calling us or filling out our contact form. We want to help you have a brighter financial future.