If you have found yourself in financial hardship, you may believe that you are out of options. However, bankruptcy is not your only choice. Through debt settlement, tax resolution, or another form of debt relief, you could be able to get your life back on track.
All throughout the nation, more and more people are falling behind on mortgage payments, sinking deeper into credit card debt, and becoming more in indebted to the government. If you and your family has found yourselves in this situation, there may be options available to you that you did not know even existed. There are numerous types of debt relief that are designed to help Americans who are struggling to stay on top of bills as well as paying off mounting debt. Please read more to learn to learn what may be the first step into getting your life back on track.
One form of debt relief is actually bankruptcy. Many people feel as though filing for bankruptcy is a form of failure. However, nothing could be further from the truth. Bankruptcy was not designed for the lender, but for the debtor. Either through Chapter 7 bankruptcy or Chapter 13 bankruptcy, you could get the chance to start again with a clean slate. Other people believe that once you file for bankruptcy, your credit is ruined for the rest of your life. It is true that bankruptcy will have a negative effect on your credit score, however this is not permanent and there are ways to rebuild it.
Another form of debt relief is debt settlement. This extremely beneficial tool could be availed of only through negotiation with your creditor. As they are under no obligation to agree to a debt settlement, it is in your best interests to have a skilled legal representative arguing for your case. If they are successful, your creditor may accept a lump sum payment and forgive the remainder of the amount owed. There are times when lenders will accept a sum as low as 25% of the original amount.
Another type of debt that many people have found themselves in is back taxes. It is estimated that over $83 billion is owed to the Internal Revenue Service (IRS) in unpaid taxes. What is so difficult about these cases is that the debt only grows with every passing year. With the help of an attorney, you could negotiate a tax resolution like an Installment Agreement Program with the IRS. This will allow you to pay a monthly sum towards your balance. You could also put what you owe into deferment so that you can get your financial affairs in order before starting to pay off your balance.
Lastly, there is the Offer in Compromise, which is similar to a debt settlement. By requesting that the IRS accepts a lump sum payment, the remainder of your debt may be forgiven. If you want to see if you qualify for any of these types of debt relief, you should speak with a legal representative from your local area. They could investigate all the aspects of your case and seek to find what is best for you.