Debt Restructuring

Assistance for Making Debt More Manageable

One of the most effective ways to lower monthly payments is to restructure debts over a longer term. By doing this, our lawyers have been able to assist many residents in northern Florida to reduce monthly expenditures. To learn more about reduced payments via debt reduction, contact one of our bankruptcy attorneys in Jacksonville or Orange Park.

How Debt Restructuring Works

Many of our clients are able to meet debt obligations if their monthly payments are lowered. Our attorneys are often able to negotiate with lenders to extend the terms of loans so that a smaller amount is paid each month but over a longer period of time. This can be helpful to creditors because they can collect interest for an extended period of time. In the long run, the borrower pays more than he or she otherwise would have, but the monthly payments become more manageable.

Here are some ways we can help clients with debt structuring:

  • Direct Negotiation - Approaching the creditor and getting it to agree to lower the payments and extend the term of the loan.
  • Consolidation Loans - Obtaining a new line of credit with more favorable terms (i.e. lower interest rates, longer repayment terms) and using it to pay off an existing debt or debts
  • Home Equity Lines of Credit (HELOC) - Individuals with equity in their homes can obtain a HELOC and use it to pay off credit cards, car loans, et cetera. The interest on a HELOC is tax deductible.
  • Chapter 13 - Under Chapter 13, the bankruptcy attorney proposes a three to five year payment plan to the courts. In this plan, the debtor makes one monthly payment, which is divided among affected creditors.

Explore Your Options for Debt Relief

Owenby Law, P.A. helps clients explore a variety of techniques and legal tools to get their finances back on track. Because everyone’s financial situation is different, there is no single solution that will work in all cases. That is why we work personally with clients and take the time to help them explore all of their unique options.

To learn more about debt restructuring and whether it may be an option for you, contact our firm today to request a FREE initial consultation with a Jacksonville bankruptcy lawyer.