Ways to Find Debt Relief Without Filing for Bankruptcy

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If you’ve been experiencing financial difficulties and you are hoping to avoid bankruptcy, there may be other debt relief options available to you. If you’ve been juggling credit cards or struggling to pay other monthly bills, you don’t have to handle this stressful time alone. The debt relief attorneys at MLG Legal are experienced and knowledgeable about many debt relief alternatives to bankruptcy that may be available to you.

Everyone’s individual situation varies. Some clients that come to us have medical bills, others are dealing with credit card debt, and others are coping with losing a job and trying to find a way to pay their monthly expenses. At MLG Legal, we work with clients in all walks of life to help them find debt relief solutions that will work for their needs. Continue reading to learn about some of the debt relief solutions that may be available to you, and if you would like to schedule a consultation with our debt relief attorneys, contact our Edina law firm today.

Debt Settlement

Debt settlement can be accomplished by speaking to your creditors and negotiating the amount that you have to pay. This type of debt relief works best for unsecured debt such as credit cards, personal loans, and payday loans where there is nothing that the creditor can collect when you stop paying such as your car or house. Creditors will often accept less than you owe because they would rather collect something than nothing, which is what they risk if you file for bankruptcy.

Debt Consolidation

Debt consolidation occurs when you combine two or more credit accounts into one. If done properly, the consolidated loan should have a lower interest rate than the original accounts. You will also end up only being responsible for one monthly payment instead of several.

Loan and Mortgage Modification

During a loan or mortgage modification, you can negotiate the terms of your loan or mortgage. This sometimes includes modifying interest rates, the length of your payback period, or adjusting monthly payments. For example, extending the length of your payback period could help you achieve lower monthly payments, or shortening the length of your payback period could result in higher monthly payments, but a smaller interest rate.

Lease Negotiation

Lease negotiation occurs when you attempt to renegotiate the terms of your lease. As with all your debt relief solutions, the goal is to reduce your monthly payments and overall debt if possible. By renegotiating the terms of your lease, you may be able to make your monthly payments more manageable. 

Refinancing

Refinancing takes place when you secure a new loan with a lower interest rate to pay off a loan that you currently hold that has a higher interest rate. While this debt relief solution doesn’t necessarily reduce the principle that you owe, the lower interest rate may still provide you with lower monthly payments. 

What Happens When These Debt Relief Solutions Aren’t Enough?

If you have sat down with a debt relief attorney, and decided that these debt relief solutions are not aggressive enough for your financial situation, it may be time to consider bankruptcy. Although bankruptcy may not be your first choice for debt relief, in some cases it is the best decision. Filing for a Chapter 7 or Chapter 13 bankruptcy may be the best solution for you to get your finances back on track. You should only make the decision to file for bankruptcy after you have spoken to a debt relief and bankruptcy attorney that can walk you through all your possible solutions so that you can make an educated decision that will help you start fresh. 

Speak to an Edina Debt Relief and Bankruptcy Attorney

If you are having financial difficulties, it’s time to speak to an experienced debt relief and bankruptcy attorney. Debt relief is not something that you want to go alone. When you work with one of the attorneys from MLG Legal, you can be rest assured that you have someone on your side who has the experience and expertise needed to successfully negotiate with creditors to provide you with the best possible outcome. Additionally, you can trust that our attorneys will always guide you in the right direction, whether debt relief solutions or bankruptcy is the right choice for you. 
Ready to start building a better financial future? Contact the Edina debt relief attorneys at MLG Legal today and schedule a consultation.