Those In Financial Crisis Have Choices To Reduce Or Eliminate Their Debt

There is more than one way to reduce or get rid of debt. Those options may not work for everyone.

There are quite a few options for debtors looking to reduce or get rid of their debt load. For instance, there is debt consolidation, debt settlement and Chapter 13 bankruptcy protection. If the debtor chooses debt consolidation, they take out a loan that covers all of their debts, and then repay them with one single payment each month.

Debt settlement is an arrangement where the debtor agrees with the lender to pay a portion of their debt back. The down side to this scenario is that they typically need to find the money to make a lump sum payment to creditors. This is difficult if the debtor is short on funds.  Also, in many cases any debt forgiven can cause income tax problems for the debtor.

A debtor may also choose to file a Chapter 13 bankruptcy, in which they draft a three- to five-year repayment plan that repays their creditors some portion of their debts. While these options may work for some people, they may not for everyone. All of them have one thing in common though: a consistent income. For those that do not have a consistent income, the unemployed or underemployed, this is a problem, which is why it is a good idea to discuss bankruptcy with a qualified Brandon bankruptcy lawyer.

Those so deeply in debt that they have no other options may, wish to consider filing a Chapter 7 bankruptcy. By and large, Chapter 7 is the one people most commonly file in the U.S. today. It eliminates a large number of unsecured debts like payday loans, personal loans, credit card debt and medical bills. Chapter 7 does have many advantages, such as the automatic stay, and the fact they are protected by the U.S. Bankruptcy Code — two benefits that remain in place during the whole process of filing for bankruptcy from start to finish.

The bottom line is that bankruptcy, and which Chapter to file under, is usually a personal choice, based on a debtor’s financial circumstances. No two cases are ever alike, and comparing what the neighbor did with what your situation is like is pointless. Talk to an experienced Brandon bankruptcy lawyer. Find out what options are available in your situation. They are intimately familiar with the process and what rules and regulations you need to follow to successfully file for bankruptcy.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit