Bankruptcy Alternatives in Massachusetts
Bankruptcy Lawyers Ready to Help
Although bankruptcy can be an excellent way for some to recover their finances, it is not for everyone. For those who cannot pay off their debts, bankruptcy is the last resort. Coleman & Macdonald Law Office to learn more about your options, Call Coleman & Macdonald Law Office now at (781) 558-5172. Our Massachusetts bankruptcy lawyers are well-versed in federal and state debt laws and ready to assist you. We listen to what you say, help you understand your options, and guide you to the best course of action.
Contact our Massachusetts bankruptcy lawyers at (781) 558-5172 to schedule a complimentary initial consultation.
Alternatives to Bankruptcy
Many people mistakenly believe bankruptcy is the only way to get rid of debt. Many options are available, but they may not suit you, and they often depend on your income and ability to make payments.
Settlement of Debt
There are two options for debt settlement. A person can negotiate with creditors to resolve their debts. Banks, companies, and other institutions may be willing to design a payment plan that suits a person’s financial situation. Before you attempt to do this on your own, consult an attorney.
Debt settlement companies are another way to resolve debts. These companies are for-profit and will work with you to settle your debt. After they have agreed on a settlement amount, the debt settlement firm will require the debtor to make a monthly payment into an account managed like an escrow account. Consistent charges to this account will eventually lead to a settlement amount.
The downsides of debt settlement are:
- It can last years
- Creditors don’t have to agree on a settlement
- Credit reports can be negatively affected by it.
Consolidation of Debt
A person consolidates all their debts by getting a loan. It is helpful because it can prevent high-interest debts from becoming insurmountable and provides a manageable monthly repayment to the debtor. While some debt consolidation loans are based on the equity in a home, others require monthly payments and are more traditional loans. A second mortgage can consolidate debt. This type of consolidation requires a home to be used as collateral. A late payment could lead to the foreclosure of the home.
A person with more equity than is covered by federal bankruptcy exemptions or Massachusetts might consider debt consolidation. Coleman & Macdonald Law Office can confirm this. Call Coleman & Macdonald Law Office at (781) 558-5172.
A consumer credit counseling plan can reduce interest rates and payments. In return, a debtor agrees to pay a creditor within a specified time. Credit counseling plans typically require monthly deposits to a credit counseling agency. Although credit counseling plans can take many years to complete, they can be handy for people looking to get rid of debt without filing bankruptcy. Credit counseling is not the same as bankruptcy.
By calling (781) 558-5172, you can determine if bankruptcy alternatives suit you.
Coleman & Macdonald Law Office has dedicated its law firm practice to helping clients and their families make difficult choices and navigate legal issues. Each team member is focused on assisting clients in getting the answers they need and the desired results. We meet weekly to discuss a case and get the opinions and insights of other firm members.