You have the right to file for bankruptcy protection a theoretically unlimited number of times, provided that you are immortal, but there are waiting periods for how soon you can file after your previous bankruptcy filing. It is possible that you can start borrowing again, and your credit card debt can pile up before you are eligible to discharge it in a new bankruptcy case. When this happens, you will have to find another way to address your credit card debt, one that does not involve the bankruptcy court.
If it were as simple as paying it down, you would have already done that. Instead, you must find a way to reduce the amount you owe through an agreement with the credit card company, buy time for repayment, or borrow money to pay off your debt. For help finding a solution to your credit card debt when filing for bankruptcy in the near future is not an option, contact an Oakland lawsuits, collections, and creditor harassment lawyer.
How Does Structured Debt Management Compare to Debt Consolidation or Debt Settlement?
You are familiar with the concept of debt consolidation loans if you live paycheck to paycheck and struggle to make the minimum payments on your debts; lenders can smell your financial instability, and they bombard you with advertisements for debt consolidation loans. A debt consolidation loan does not get you out of debt; it just gives you time to repay, and it reduces the amount you pay in the long term. The debt consolidation loan has a lower interest rate than your credit card debt, so by borrowing the debt consolidation loan, using it to pay off your credit card debt, and then making payments on the loan, you not only lower your monthly payments, but you also pay down the loan principal more quickly.
The trouble is that if you have recently filed for bankruptcy, it is difficult to get an unsecured personal loan with a low interest rate. Online lenders, also known as rent-a-banks and peer-to-peer lending platforms, might be willing to lend to you, but these come with risks.
Your other options involve negotiating with the credit card company. The company may be willing to settle your debt or else to restructure it. Debt settlement involves the credit card company discounting a flat amount from your outstanding balance and you agreeing to pay it in installments. Structured debt resettlement is when the credit card company does not change the amount of outstanding principal but lowers the interest rate; once you accept this agreement, you go back to making monthly installment payments, and your principal balance gets smaller faster. It is the next best thing to an interest-free balance transfer; it might be even better because the new, low interest rate lasts until you pay off the debt.
Contact the Law Office of Melanie Tavare About Getting Out of Credit Card Debt
A debt relief lawyer can help you explore debt repayment options such as structured debt management. Contact the Law Office of Melanie Tavare in Oakland, California or call (510)255-4646 for a case evaluation.
If the retailers of the world had their way, everyone would spend their tax refunds…
Walking away from homeownership and surrendering your house to the bank to avoid foreclosure is…
You have gotten as far in your plans to file for bankruptcy as reading the…
Before your financial situation got as bad as it is, you used to read long-form…
One of the more tone-deaf pieces of advice people can give you when you are…
You do not have much money to spend, or else you would not have decided…