If you’re living with debt, you’ll want to alleviate the issue immediately so you can reduce stress and improve your quality of life. Thankfully, there are several ways to seek debt help and get your finances back on track. Here are four solutions to choose from depending on your unique circumstances.

What Are the Main Debt Help Solutions Available?

1. Debt Settlement

Many times, when a substantial debt is owed to a single creditor, it’s possible to negotiate the amount owed. However, this debt relief option will require the settlement to be paid as a lump-sum payment. In many instances, it can take two to three years for a settlement amount to be reached, which can result in fees and penalties that can affect your credit score and credit report if you don’t make payments during this time.

2. Debt Consolidation

If you have debt stemming from multiple creditors, a single loan can be taken out to cover the total debt owed. In many cases, this is done to make your payments more manageable and get rid of multiple high-interest rates. However, it’s important to then curb your spending and refrain from opening any new credit cards. 

3. Chapter 7 Bankruptcy

If your current debts owed total more than your annual income and will take more than five years to pay off, filing a Chapter 7 bankruptcy may provide relief. This type of debt help will discharge most or all of your unsecured debt, like credit cards, medical bills, and personal loans, to prevent aggressive collection actions and loss of exempted property. An appointed trustee will sell your nonexempt assets and use the proceeds to pay back creditors. 

4. Chapter 13 Bankruptcy

When you have a substantial income but are dealing with many creditors, filing a Chapter 13 bankruptcy can help. It reorganizes your debt and protects your property from foreclosure or repossession while avoiding liquidation of other assets. A plan will be submitted to the court that will allow you to pay all debts, even those in delinquency, to avoid future penalties and fees that might harm your credit. 

If you’re seeking debt help, turn to Hurtt & Johnson, LLC. For over 40 years, this law firm has assisted the residents in Dalton and Calhoun, GA, with personalized bankruptcy services. Their attorneys make sure all of their clients are well-informed of the bankruptcy process, their rights, and how the case is progressing. Call them today at (706) 226-5425 to schedule a free consultation, and visit their website to learn more about their firm.