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:
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.