Phoenixville, PA Debt Consolidation Attorney

If you are feeling the pressure of your debts in Phoenixville, debt consolidation could provide a solution to regain control of your finances. Our lawyers can help you explore which options would work best for your case.

Several debt consolidation strategies could be useful depending on your circumstances. Our attorneys can review your case to determine the types of debts you have and if consolidating them into one loan would be beneficial. This new loan will help you move forward, but we might also be able to negotiate better rates with your creditors who recognize the reality of your situation. In many cases, consolidating your debts will lead to monthly payments you can handle. However, if debt consolidation does not seem appropriate in your case, we can explore other options with you to relieve the burden, including filing for bankruptcy.

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

Types of Debts Our Attorneys Can Help You Consolidate in Phoenixville, PA

People grappling with debt in Phoenixville often find that consolidation offers a pathway to regaining financial control. Our debt consolidation attorneys take great pride in helping our clients reorganize their finances. With consolidation, you will be able to streamline multiple debts into a single, more manageable payment. Regardless of the debts weighing on you, options are available. The following are some of the debts we can help consolidate in Phoenixville:

Credit Card Debt Consolidations

Our attorneys commonly help clients consolidate their credit card debt. With high interest rates compounding the owed amount, credit card debt can quickly become unmanageable.

Our attorneys can use a consolidation loan to combine multiple credit card balances into a single payment, greatly simplifying repayment. In many cases, we can also negotiate lower interest rates, making it easier for you to reduce your principal balance. We typically need to assess your total credit card debt before negotiating terms with creditors.

Medical Debt Consolidations

You might have experienced unexpected medical emergencies or prolonged health issues, leading to substantial medical debt. Unlike credit card debt, medical bills often do not come with the same high interest rates. Instead, you likely find yourself overwhelmed by the sheer volume of bills you have from several providers.

Our firm can negotiate with healthcare providers and insurance companies to consolidate all outstanding medical bills into a single, more manageable payment plan. We can also dispute billing inaccuracies, potentially reducing the total amount you owe.

Student Loan Consolidations

We can also help you overcome the significant burden placed on you by your student loan debts with a debt consolidation loan. While federal student loans offer various repayment plans, private student loans are less flexible, making consolidation an attractive option.

For federal loans, we might suggest a Direct Consolidation Loan. This type of loan can help you get access to certain forgiveness programs.

For private loans, we can negotiate with lenders to consolidate multiple student loans into one loan with a potentially lower interest rate.

Personal and Payday Loans

We also have experience consolidating personal and payday loans, often reducing the high interest rates these loans are known for. Individuals struggling with the cycle of short-term, high-interest loans can find relief through the consolidation strategies our team develops. With a new loan, your payments should be combined into a single loan with a lower interest rate. In other cases, we can help develop a debt management plan that addresses your payments.

Can Filing for Bankruptcy Help Consolidate Debts in Phoenixville, PA?

Bankruptcy is also a process that can help you eliminate or repay your debts. It can also function as a form of debt consolidation, particularly through Chapter 13. However, Chapter 7 bankruptcy can also provide some form of relief.

Chapter 7 Bankruptcy: Liquidation

Chapter 7 bankruptcy, known as liquidation bankruptcy, will discharge certain unsecured debts like credit card debt, medical bills, and personal loans. However, Chapter 7 does not necessarily serve as a debt consolidation tool in the traditional sense, as it focuses on liquidating non-exempt assets to pay off creditors before discharging remaining eligible debts. Still, it is an option worth considering in certain circumstances.

Keep in mind that not everyone is eligible for this type of bankruptcy. In order to qualify, you must first pass a means test, which compares your income to the median income in Pennsylvania. If your income is found to be too high, Chapter 7 might not be a viable option.

If you pass the means test, a trustee will be appointed to oversee and manage the case. This trustee will evaluate all of the filer’s assets to determine if any can be sold to repay creditors.

Chapter 7 bankruptcy can offer a fresh start by discharging most debts. However, it can also significantly impact your credit score and ability to obtain future credit.

Chapter 13 Bankruptcy: The Repayment Plan Option

Chapter 13 bankruptcy is usually a better option. It is more focused on actual consolidation rather than discharging the debts. With Chapter 13 bankruptcy, we will help develop a plan to repay some or all of your debts over a period of three to five years.

To be eligible for Chapter 13 bankruptcy, you must have a stable income sufficient to cover your monthly expenses and the plan’s payments.

The process typically involves the debtor proposing a repayment plan that details how they will pay off their debts. Priority debts such as back taxes and child support must be paid in full, while unsecured debts like credit card debt usually do not require full repayment at the start.

One of the major benefits of Chapter 13 bankruptcy is that it can also stop foreclosure proceedings. If you are a homeowner, this will give you the opportunity to catch up on your missed mortgage payments.

How Debt Consolidation in Phoenixville, PA Can Affect Your Credit

After consolidating your debts, you might notice a temporary dip in your credit score. This impact is primarily from the inquiries made by lenders when applying for consolidation loans. Hard inquiries can slightly lower your credit score for a short period.

Additionally, opening a new credit account, such as the one for the consolidation loan, can decrease the average age of your credit accounts. But this temporary dent in your credit score is preferable to having unmanageable debt.

However, debt consolidation usually has a positive effect on your credit score over time, provided you adhere to the financial responsibilities called for after the consolidation.

Our Phoenixville, PA Debt Consolidation Attorneys Can Help Get Your Finances Back on Track

Our debt consolidation attorneys at Young, Marr, Mallis & Deane can provide you with a free case review by calling us at (215) 701-6519.