When dealing with debt, bankruptcy might seem like the only solution. However, it’s important to explore all available options before making such a significant decision. At Debt Advisors Law Offices, we understand that bankruptcy isn’t always the best choice for everyone. We offer various non-bankruptcy alternatives designed to help you regain control of your finances, preserve your assets, and make informed financial decisions. This guide will walk you through some of these options, offering insights into how they can benefit you.
Choosing a non-bankruptcy option can help you avoid the long-term consequences of bankruptcy, such as damage to your credit score and loss of assets. These alternatives can often provide a more manageable way to address debt while allowing you to keep your property and maintain financial stability. Let’s explore the options available in Wisconsin that might be right for you.
Mortgage modification involves altering the terms of your current mortgage to make payments more affordable. Unlike refinancing, which replaces your existing loan with a new one, modification adjusts the existing terms. This could include lowering your interest rate, extending the loan term, or even changing your payment structure.
If you’ve faced significant life changes such as a divorce, medical emergency, or job loss, managing your mortgage payments can become challenging. In such cases, a mortgage modification might be a viable option to help you stay in your home and avoid foreclosure.
Applying for a mortgage modification typically involves:
At Debt Advisors Law Offices, our attorneys can guide you through this process, ensuring that you get the best possible outcome from your mortgage modification.
In 2021, the FHA announced the end of the COVID-19 foreclosure moratorium effective June 30, 2021. Additionally, the Consumer Financial Protection Bureau proposed new rules to encourage “early intervention” for homeowners at risk of foreclosure. These updates emphasize the importance of exploring mortgage modifications if you’re struggling financially.
Chapter 128, also known as a Wisconsin Reorganization Plan, is a state-specific debt relief option that allows you to consolidate and repay your unsecured debts through the court system. This plan can be an attractive alternative to bankruptcy for those dealing with payday loans, credit cards, medical bills, and other unsecured debts.
To qualify for Chapter 128, you must:
Chapter 128 does not cover mortgages, car loans, or student loans. It’s a voluntary debt consolidation plan that can be less costly than bankruptcy and doesn’t require credit counseling.
Credit counseling is a service that helps individuals manage their finances and address debt-related issues through educational programs. These programs typically cover budgeting, debt management, and strategies to improve financial health.
Credit counseling can:
It’s essential to choose a reputable, non-profit credit counseling agency. Verify their credentials and ensure they offer the services you need.
Credit counseling can be particularly useful if you want to avoid bankruptcy. It can provide a clearer picture of your financial situation and offer strategies to handle your debts effectively. If you do end up filing for bankruptcy, credit counseling will also be a required step.
Debt settlement involves negotiating with creditors to reduce the total amount of debt owed. This process aims to settle debts for less than the full amount, which can significantly lower your overall debt burden.
Debt settlement might be suitable if:
Debt Advisors Law Offices provides transparent and effective debt negotiation services, helping you achieve a manageable debt settlement while keeping you informed about the process and potential fees.
Exploring non-bankruptcy options can be a practical way to address debt and regain financial stability. Whether you’re considering mortgage modification, Chapter 128, credit counseling, or debt settlement, each option offers unique benefits tailored to different situations. At Debt Advisors, we are committed to helping you choose the best path forward based on your circumstances.
If you’re unsure which option is right for you, contact us for a free consultation. Our dedicated attorneys and support staff are here to provide the guidance and support you need to make informed financial decisions. Read our client reviews to see how we’ve helped others and to gain confidence in our services.