Debt Settlement vs. Bankruptcy
Our Palm Beach Bankruptcy Lawyer has Answers
Unexpected changes in a life due to a divorce, an expensive medical emergency, or job loss can affect the ability of an individual to meet financial obligations and make timely payments to creditors. Many face foreclosure, car repossession, or even garnishment of wages due to these unforeseen circumstances. At the first signs of financial hardship, it is a good idea to seek legal advice instead of waiting until creditors harass and threaten while demanding payments.
Our Palm Beach bankruptcy attorney wants you to know there are options available for relief. When you are unable to keep up timely payments to creditors, it may be time to take the next step towards financial freedom. Both bankruptcy and debt settlement are viable options, but you will need to determine which is best for your unique situation.
Have questions? Contact us at the Law Offices of Carol D. Ellis, P.A. or fill out a free case evaluation!
Legal Services for Clients with Large Debts
If you are struggling with large debts and financial problems, you should seek legal advice regarding the solutions available in your specific situation. Some individuals are in a position where they have the funds to settle a debt for less than the amount owed while others are behind in payments with no option other than to declare bankruptcy. There are many methods to debt discharge, each with its own benefits. When you contact our lawyer, we can guide you through each one of them to find the solution you like best.
The following two options vary in how they resolve debt matters:
- Settlement: Pay a smaller amount than owed in payments or one sum, less negative impact on credit scores, avoid bankruptcy court.
- Bankruptcy: Fully discharge certain debts while retaining some assets and real property. No need to have disposable income for certain filings, allowing for more flexibility.
A bankruptcy filing stays on a credit report for 10 years and individuals need to take the steps to reestablish credit in a responsible manner. Debt settlement may or may not show on a credit report depending on the situation, but there may be tax consequences if the forgiven debt becomes income. Let our Palm Beach bankruptcy attorney help you decide whether to file for bankruptcy or settle debts.
To learn more about which option is right for you, call (561) 513-5809 to speak directly with our lawyer!
