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Levittown, PA Debt Consolidation Attorney

Debt consolidation often works as a powerful tool to get all your debts into one manageable payment. Our attorneys can explore how debt consolidation can work for you and help you apply for a new loan.

Debt consolidation works by combining your current debts into one loan. By doing this, you will only be responsible for one monthly payment with one interest rate. This is a far better prospect that paying on several loans, each with it own interest. It can allow you to keep important possessions, like your car and home. However, we can also review other options to get your finances in order if debt consolidation is not right for you. In some cases, filing for bankruptcy might be a better long-term solution for your financial troubles.

For a free case evaluation with our debt consolidation lawyers, contact Young, Marr, Mallis & Deane at (215) 701-6519.

Understanding What Debt Consolidation Does in Levittown, PA

Consolidating debt typically involves acquiring a new loan to pay off the various debts causing you trouble. Although getting another loan does not sound like the best way to handle the other debts, it is often the best solution to the problem. Our debt consolidation lawyers frequently help our clients obtain a new line of credit that they can use to tackle the original debts. This way, they will only need to make one overall payment instead of several.

You might have several reasons for consolidating your debts. If you find yourself in a situation where you have stretched your finances too thin, or you have unexpected finances, such as medical expenses for an unforeseen accident, we can help determine if debt consolidation can solve these issues.

If you have several debts that you are unable to handle at the moment, debt consolidation might be worth considering. You might have so much debt that you need to prioritize which ones you will pay and which ones you will take a hit on. In most cases, people make their required payments but can only pay the minimum each month, so the interest continues to grow. Debt consolidation is typically the best way to get back control by combining these debts into one monthly payment.

Debt consolidation can also help in serious cases, like when someone falls behind on their mortgage payments. Mortgage foreclosure presents other challenges that can seriously affect your financial future, which is why our lawyers recommend considering debt consolidation to save your home.

Deciding Between a Debt Consolidation Loan and Filing for Bankruptcy in Levittown, PA

Sometimes, debt consolidation is not a viable option in Levittown. If your debt is too high or other financial trouble gets in the way, our attorneys can help you explore other options. One method that might be right for you is bankruptcy.

While bankruptcy and debt consolidation are similar, the consequences of each differ. Bankruptcy is done through court proceedings and might impact your credit score more harshly. The main draw of filing for bankruptcy is that it comes with advantages like total discharge of the debts and automatic stays from creditors’ attempts to collect.

While debt consolidation does not have these perks, it does not take a legal filing to accomplish. Debt consolidation is also less likely to damage your credit score for as long a time. We can help you decide which option works best for you.

Chapter 13 Bankruptcy

The first option we will help you review is Chapter 13 Bankruptcy. By filing for Chapter 13 bankruptcy, you can consolidate your debts into one manageable payment, usually with a lower interest rate. In this way, it works much like debt consolidation.

However, you will have to develop a payment plan that shows how you will satisfy your debts, typically over a period of three to five years. Our team can help you draft a plan that accounts for credit card debts, car loans, mortgages, and any other debts you are struggling with.

We will also help you document the information necessary to have your plan approved by the court. This includes your income, any dependents, and other financial information impacting your situation, in addition to your debts.

Chapter 7 Bankruptcy

If you make too much money, you will usually not qualify for Chapter 13 bankruptcy. If so, we can help see if Chapter 7 bankruptcy might be a solution. However, this type of bankruptcy comes with some serious drawbacks.

It is also known as “liquidation” because some of your assets will be sold to satisfy your debts. This can include your car and even your home. Our lawyers can help you weigh this option carefully before deciding to file. We might be able to use federal or state exemptions to protect your home and other assets. This way, you are not as exposed to risk as you would be without the held of an experienced attorney.

However, once Chapter 7 proceedings have concluded, you debts will be discharged. So, whatever medical debts, credit card bills, and other debts you were facing will be wiped out. Also, if you are already involved in litigation, like a foreclosure or sheriff sale, Chapter 7 bankruptcy will stop these through an automatic stay. Our attorneys will help you determine if these advantages would serve your interests.

Why You Should Work with Our Debt Consolidation Attorneys Over Other Sources in Levittown, PA

There are numerous reasons to choose the help of an attorney over the services of businesses that lack the legal skills and resources to handle your case promptly. Companies that handle debt consolidation often do not give people the attention they deserve, overlooking important details that our lawyers would not fail to see. These businesses also usually lack the skills to negotiate firmly to get the interest rates you need.

If your financial situation is difficult to untangle, it is better left in the hands of our skilled attorneys. If you have several debts with various lenders, it might be hard for a debt consolidation company to keep track of them. They also might not have the experience to check for debts you might have even forgotten. Our team will make sure all your debts are accounted for so that we can negotiate with every detail in mind.

Also, debt consolidation companies do not typically have any specialized legal knowledge. This means they could lead you down the wrong path, opting for debt consolidation when bankruptcy would have been a better choice. Some companies might conceal this fact even if they know it to avoid losing your business. On the other hand, our lawyers will always provide you with an accurate assessment of your financial situation.