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West Chester, PA Debt Consolidation Attorney

Debt consolidation can serve as a powerful tool to help you get your financial situation back under control. Our attorneys can help by reviewing all your debts and applying for a new loan.

Through debt consolidation, those struggling with debt can lump most or all of their monthly payments into one consolidation loan. This often leads to lower interest rates and a quicker turnaround on settling the debt. However, our team can explore other options with you if you end up not qualifying for a new loan. In some cases, filing for bankruptcy can provide a path towards financial recovery. The consequences of each option can be substantial, so speak with our lawyers soon to see how each will impact your case.

Call our debt consolidation attorneys at Young, Marr, Mallis & Deane at (609) 755-3115 for your free case evaluation.

Reasons You Might Consider Consolidating Your Debt in West Chester, PA

It is common for people in West Chester to deal with debt. Almost everyone has some form of debt these days, especially if you have purchased a car or home or taken out loans for school or to create a business. Many of the loans will have you paying over a significant period, usually costing you a great deal in interest. When you find yourself with too many debts that are too difficult to manage at once, our team can help you determine if debt consolidation is right for your situation.

Our goal with debt consolidation is to combine all of the debts that we can into one larger loan. Our debt consolidation lawyers will work with you to take out a new loan and use it to settle your debts. If approved, you will only have one loan to worry about moving forward. It is much simpler to manage a single monthly payment for one large loan than to manage multiple payments to various creditors. It should also help you save on interest since you on not paying interest on several loans at once.

Many people get loan consolidations to address outstanding credit card balances that have gone beyond their control. You might also have a car loan that is catching up on you. Other people get a new loan to help them repay a mortgage. This debt can pile up before you know it.

Plenty of individuals tend to manage their debts without much trouble. But life is far less in our control than we would wish. Sometimes, an unexpected setback can cause serious financial trouble. For instance, if you are injured, you could suddenly be saddled with thousands of dollars in medical bills in an instant. If you cannot work, your debts will continue to grow. We can help you get ahead of these issues before they spiral out of your control.

Understanding the Types of Debts You Could Consolidate in West Chester, PA

When considering consolidating your debts, our lawyers can help you determine which debts are secured and which are unsecured. Secured debts are typically backed by some type of property. To secure a loan, you might have provided your vehicle or even your home as collateral. If you are unable to pay back the debt, the creditor has the right to take possession of your collateral.

For instance, homes are considered one of the most lucrative forms of collateral, so they are considered secured debt. If you fail to make your mortgage payments, your creditor, often your bank, can attempt to foreclose and take possession of it. Vehicle loans also count as secured debts. So, if you cannot make your loan payments, the creditor can repossess your car.

Consolidating secured debts can be challenging depending on the property involved. We recommend speaking with our team soon to determine how best to consolidate these debts.

Unsecured debts, on the other hand, do not use property as collateral, so there is nothing to seize. Instead, creditors will usually file a lawsuit against you to recover the debt.

Private loans, credit card debt, and certain types of student loans are common examples of unsecured debts that many people struggle with. Unlike secured loans, unsecured loans can be consolidated more easily through a debt consolidation loan. Many of the clients we help have several kinds of unsecured loans, many with smaller debts that still add up in interest. A loan consolidation is a much more manageable way of handling these debts.

What You Can Do if Debt Consolidation Cannot Help Your Situation in West Chester, PA

Unfortunately, not everyone will qualify for debt consolidation in West Chester. In many cases, the debtor’s credit score is too low to get approved for the new loan. The good news is that our attorneys can help you explore other options to relieve your financial burden. Depending on your debts, we might be able to help you file for either Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 Bankruptcy

If an individual’s income falls below the average Pennsylvanian’s, they might be eligible for Chapter 7 bankruptcy. However, this involves selling off certain assets to satisfy the debts. Therefore, you will want to work with our team to create a strategy that safeguards important assets.

In Chapter 7 proceedings, possessions like your home or vehicle could be in jeopardy of being sold. Also, a homestead exemption does not exist for Chapter 7 filings in West Chester, but we can explore other options that can allow you to keep your property.

The benefit of Chapter 7 bankruptcy is that it can discharge your debts. This could potentially relieve you of the obligation to repay certain types of unsecured debts, the most common of which include credit card debts. However, we can review all your debts to help determine which ones can be discharged.

Chapter 13 Bankruptcy

In other cases, your income might be high enough to qualify for Chapter 13 bankruptcy. As part of your Chapter 13 filing, you will need to develop a detailed repayment plan. Our attorneys can help you develop this plan, so it is approved by the court.

Your repayment plan should include your income, current expenses, debts, the number of dependents you have, and any other details relevant to your financial situation. It should also contain how you plan to pay each creditor back, including a schedule for payments. Still, the goal is to draft a plan that works for you and those that you owe.

Most Chapter 13 bankruptcy plans last between three and five years, depending on the debts you are liable for. However, once your debts are settled and the plan has been satisfied, you will no longer have to worry about your creditors. Depending on your financial situation, Chapter 13 bankruptcy might be a better option for you than even debt consolidation. We can help you determine the right choice.