Bankruptcy or Debt Consolidation: What’s Right for You?

When you are faced with mounting debt, and creditors are threatening to garnish your wages or take you to court, it’s easy to feel like there is no way out. Over a million Americans experience this situation every year.

Don’t be embarrassed. Debt happens to good people. If it happens to you, it’s important to know that you have options. Speaking to an experienced bankruptcy lawyer who can explain your options in a confidential, free consultation is the best place to start.

Many people consider debt consolidation because they see and hear commercials on TV and radio. This is not always a great choice.

When it Comes to Your Financial Situation, What’s Most Important to You?

If you’re looking for a fresh start, bankruptcy may very well be the answer. Filing for bankruptcy protection may discharge (most of) your debt, and leave you with a clean slate. Once your debts are discharged, you can slowly begin to rebuild your credit.

Filing for bankruptcy will negatively affect your credit. In addition, your credit report will include your bankruptcy for seven years, no matter how your financial situation improves in that time. That being said, if you are in over your head financially, it’s likely your credit report isn’t stellar today, is it? Getting on the road to better financial health will cut back your stress level, too!

On the other hand, while consolidation may – on the surface – seem like a better option, be careful! If you are in a position to consolidate your debts (your debts are only mildly overdue, and your accounts with creditors are still open), you may be considering working with a consolidation company.

Do your due diligence before signing up with any company. The fees they charge can seriously increase your debt and you may be forced to pay less money over time in a greater number of payments. That’s not always the best way to get your financial house in order and it often will cost you far more than you think.

The Right Attorney Can Help

An experienced attorney like Joel R. Spivack Esq. will help you analyze your personal financial situation, and determine the best course of action for your family so you can get back on the road to good health and start rebuilding your credit as soon as possible.

We are here to help you.

Is this a New Jersey matter or Philadelphia Region matter?
We are licensed to practice in New Jersey and Pennsylvania.

Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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