An option to filing Chapter 7 or Chapter 13 bankruptcy is debt consolidation.  Is this an option for you to resolve your financial debt issues?  Debt consolidation is a common option to bankruptcy, but to truly understand which debt relief is best for your specific financial and debt situation, contact our attorney. Our Paradise Debt Relief Lawyers offers a FREE debt evaluation.  We will listen to the concerns you have about your debt.  Also, we will listen to your priorities and goals about your financial future.  Plus, we will offer you professional, expert, and honest advice and provide you with options to get out of debt.

How Debt Consolidation Works

Debt consolidation combines multiple debts into one (more manageable) debt.  The idea behind consolidating debts is that a debtor may have a better shot handling one debt than balancing several debt payments.  By putting the debts together, all debt becomes a single debt, a single payment, a single schedule, a single creditor.

Additionally, the goal is to make it easier for debtors to repay creditors.  Consolidating debt simplifies the process while reducing monthly payments and interest rates.  Basically, the debtor takes out one new loan to pay off all other debts.  Debt consolidation focuses on reducing your debt.  Also, debt consolidation is not debt settlement.

Consolidating debt is a different process from bankruptcy.  A trustee is assigned to a Chapter 7 bankruptcy case and sells non-exempt property to pay creditors.  You keep your exempt property.  In Chapter 13, a repayment plan reorganizes debt and allows you to repay creditors over time.  Bankruptcy is an option for those who need to eliminate overwhelming debt.

We Can Help You Make The Right Choice For Your Debt Relief

Our attorneys know the pros and cons, the ins and outs to debt relief.  Consolidation of debt or Nevada bankruptcy protection.  After assessing your debt and understanding your debt situation, we can offer you options to get you out of debt.

The right choice for you depends on your needs and goals – short term and long term.  In particular, it is important that you involve our experienced debt relief team, so that we can help you not only get out of debt now, but help you to rebuild what needs to be a bright financial future.

If you are looking to wipe out debt and lift the burden of debt through a discharge, bankruptcy may be an option.  Bankruptcy provides protection against creditors.  When a bankruptcy petition is filed, all creditors must stop all collection activities, including foreclosures, wage garnishments, phone calls or letters, and repossession.  Debt consolidation does not offer this protection.  With your biggest sources of debt eliminated through bankruptcy, you can begin again with new strategies and new practices that keep you financial stable.  With the elimination of debt you are now able to keep up with payments. Bankruptcy can provide you the base to gradually improve your credit.

You may see the effects of debt consolidation when it comes time to do taxes.  If the IRS views the money you saved by consolidating income, you would be required to pay tax on that income (settled debts are classified as income, so can be subject to taxes).

We can help you manage your debt.  Specifically, we can help you weigh your legal options after evaluating your debt.  Schedule a free case evaluation with an attorney at Paradise Debt Relief Attorneys.