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Debt relief company challenges

On Behalf of | Aug 17, 2022 | Consumer bankruptcy |

Memphis and Arkansas residents understand the burdens of a tough economy. Consumer bankruptcy is on the minds of many especially dealing with issues using a debt relief company. Financial woes force people to make tough choices to care for their families. Consumer bankruptcy relief frees families from most debts, giving them a chance at a fresh start.

Consumers have options to repay debt, and choosing the best one depends on your circumstances. Negotiating pay-off amounts, reducing interest rates or setting up a repayment plan to get back on track saves time and money.

A debt clock of approximately seven years summarily states each time you make a payment or payment arrangement, you potentially restart the clock. The debt clock is the amount of time your creditors must try to collect monies from you. In some cases, consumer bankruptcy offers repayment plans with greater protections than debt relief companies.

Consumer bankruptcy debt relief

Consumer bankruptcy eliminates all or most of your debts. This form of debt relief offers legal protection against debt collection. Depending on your situation, you might keep all or most of your property, including your home or vehicle. Families who are overwhelmed by debt consider this option to relieve them from the stress of collection efforts.

Other debt relief options provide a middle company to negotiate with your creditors on your behalf for a fee. Fees can vary, and some are hefty. This type of debt relief doesn’t offer protections like consumer bankruptcy. Your creditors can still act against you and can terminate the agreement.

Seeking debt relief

If you can pay your debt off on your own with a three-five year plan, that is a viable option, but if the odds are against you, seeking relief through bankruptcy might be a more feasible way forward.