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How Can I Get Out of Debt?

November 30, 2020 in Uncategorized | MARTIN WREN, P.C. | LEAVE A COMMENT

Personal Injury Lawyer

If you’re an adult, you probably have some form of debt. Whether it’s a credit card, student loan, or mortgage payment, having debt is pretty normal. But if you have too much debt, you might be wondering, “How can I get out of debt”?

GET ORGANIZED

Whether it’s a little bit of debt or a lot, it can be easy to just turn a blind eye rather than face the real financial consequences. Don’t do this! The best way to manage your debt is to organize your debt. Know how much you owe and to whom. Make a spreadsheet and for each debt list the following:

  1. The creditor
  2. The total amount of debt
  3. The monthly payment
  4. The due date

If you are feeling overwhelmed by this task, just take a look at your credit report, it’ll do the majority of this work for you. Update your list every few months as the total amount of your debt fluctuates.

Next, make a budget and decide which debts to pay off first. Make more than the minimum payment if possible, you can only pay as much on your debt as you can afford. If, after getting organized, you find it hard to pay all or some of your bills each month, consider debt relief.

DEBT RELIEF

Debt relief (also known as debt settlement, debt reduction, debt negotiation, debt resolution) applies only to unsecured debt, which is a debt that is not secured by collateral, like credit cards and certain types of loans.

Settlements are negotiated with the creditors in an attempt to lower the amount of debt due. Once an agreement is met, the terms of the debt relief are put into a contract. Often, the creditor will forgive a large part of the debt in return for a one lump-sum payment in exchange for the debt to be considered cancelled and the matter closed.

BANKRUPTCY

If you find yourself owing more money to creditors than you have, or can foreseeably earn, it may be time to consider bankruptcy.

Chapter 7 is the most commonly filed bankruptcy amongst individuals. The assets you own will be liquidated and used to pay off your debts. After that, the bankruptcy is usually dismissed. Chapter 7 is often referred to as a “fresh start”.

If you don’t qualify for a Chapter 7, you may be eligible for a Chapter 13, also known as the “wage earner” bankruptcy, because you must have a reliable source of income. Your finances are reorganized into a plan that allows you to pay back creditors over three to five years while maintaining control and ownership of your assets.

HIRE A LAWYER

Hiring a lawyer to assist you is one of the most important steps in successfully settling a debt, filing for bankruptcy, and avoiding legal consequences. If you are interested in learning more about debt relief, contact a debt relief attorney, like the experienced lawyers of Kamper & Estrada, PLLC. for a free initial consultation.

Contact Our Virginia Lawyers

We serve clients throughout Virginia — from Charlottesville and Central Virginia to metropolitan Richmond; Harrisonburg and the Shenandoah Valley to Roanoke; and the cities of Hampton Roads to the Northern Virginia cities of  Fairfax, Alexandria and Arlington.

To speak with one of our attorneys, please call us at (434) 817-3100.

Our Virginia personal injury lawyers at MartinWren, P.C. also have a statewide practice and offer free consultations at a time and location that is convenient for you.  We will gladly meet with you at your home or at the hospital, even on nights and weekends.

To schedule a free consultation with a personal injury lawyer, please call us at (434) 817-3100.

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