How to Avoid Debt Consolidation in Favor of Debt Settlement and Bankruptcy
If you find yourself having financial difficulties, and you have debts that you can’t pay, you’ve probably been trying to figure out which debt settlement or bankruptcy options you are eligible for, and which of these options would be the cheapest, easiest solution.
However, it can be difficult to figure out what decision to make when there is misleading information on the Internet and a wide range of Denver bankruptcy attorneys and debt settlement attorneys near you. In addition, there are debt consolidation and private debt settlement companies competing for your business, making it hard to know who to trust.
At Wink & Wink, the leading bankruptcy and debt relief lawyers near you, we take the time during a free consultation with you to explain the expenses associated with all forms of debt resolution – and whether you’ll benefit from that particular solution – so that you can make an informed decision with information from a trustworthy source. Wink & Wink can do this because it offers a full suite of debt relief solutions including bankruptcy, debt settlement and tax resolution.
Why You Should Avoid Debt Consolidation, When Bankruptcy Options and Debt Settlement Exists
Debt consolidation is often not the right solution for debt resolution, particularly when Wink & Wink’s bankruptcy attorneys in Denver can provide a variety of options that can get you out of debt for a fraction of what you owe.
It is important to remember that debt consolidation is not debt settlement. When you work with a debt consolidation company, you are assigned a new creditor who lumps, or consolidates, all of your debt into one loan, which you still have to pay off – with interest. Instead of juggling multiple creditors, you now have a single payment. However, that payment is simply all your debts added together, and no reduction of your debt has taken place. Because you will always pay interest on a consolidation loan, debt consolidation will always entail paying more than you owe to resolve your debt. Consolidation is misleading in this regard, and many consumers end up recognizing that this isn’t a solution so much as passing off your loan to another lender who intends to continue charging you interest until you pay.
No one wants to be in the same position as they were before they tried debt consolidation, but this is what often happens when a consumer attempts this route. Instead, Wink & Wink’s team of debt settlement attorneys recommend debt settlement as a far more beneficial solution.
Why Choosing Debt Settlement with a Leading Attorney is Superior to Debt Consolidation
Debt settlement is an option that is typically more cost-effective than debt consolidation. Debt settlement is a key debt relief solution in which you stop paying your debt while your attorney negotiates settlements directly with your creditors, so that you receive a reduction in the amount you have to pay. At Wink & Wink, our expertise has allowed our clients to achieve a reduction of approximately 50 percent on credit card and medical bill debt.
It is important to work with the local debt settlement attorneys at Wink & Wink because our honest approach will help ensure your success while also being cheaper than our competitors. We will be honest with you about how much it will take to settle and how quickly you will need that money, so you know what to expect and are in position for success.
Additionally, we negotiate lump-sum settlement payments whenever possible. Creditors typically accept less when it can be paid in a lump-sum, so this approach generally will save you money. Finally, we charge approximately ½ of what many of our competitors charge. All of this makes our debt settlement services cost-effective for you.
Why a Bankruptcy Option Could Be the Most Efficient Choice for You
While debt settlement is a highly effective debt solution when you work with a leading debt settlement attorney, Chapter 7 or Chapter 13 bankruptcy also have significant benefits, depending on your particular circumstances. As we’ve described above, debt settlement may enable you to get out of debt for approximately 50% of what you. In many cases, bankruptcy can get you out of debt for much less than that. At Wink & Wink, our full suite of debt relief services enables us to advise you on the best solution for you. We are all about what will work best for you.
We can help you navigate Chapter 7 bankruptcy, which can wipe your credit card and medical debt clean, allowing you to get a fresh start. Shortly after, you’ll be able to increase your credit score, too, typically around six months after filing. In general, your credit recovers after bankruptcy much more quickly than the banks would lead you to believe. It is possible to have a 700+ credit score and be eligible for a mortgage two years after filing bankruptcy. In many cases, this level of credit rehabilitation cannot happen outside of bankruptcy. This means that, for many, bankruptcy is the quickest way to getting good credit. It’s true!
For those whose median income is above the income threshold to qualify Chapter 7 bankruptcy (as determined by the “long-form means test”), Chapter 13 bankruptcy can also discharge unsecured debt, such as credit card debt and medical bills. However, Chapter 13 bankruptcy requires a three-to-five year repayment plan, which is often more expensive than Chapter 7 and may or may not be a more affordable option for you.
Each situation is different, and our team of Denver bankruptcy attorneys will ensure that your individual circumstances get the time and attention they deserve, keeping affordability as a top priority.
Related Blog: Does Income Affect Whether I Can File for Bankruptcy?
Schedule a Free Consultation with Wink & Wink to Review Your Bankruptcy Options
Whether you’re considering debt consolidation, debt settlement, or a form of bankruptcy, we recommend partnering with an experienced law firm, such as Wink & Wink. Our debt settlement attorneys and bankruptcy attorneys in Denver have helped many clients who faced the same challenging situations that you are facing now. We’ve been able to achieve desirable results, helping to steer clients like you away from misleading debt consolidation companies, national debt settlement companies, and others who use fear tactics to urge you toward their services.
At Wink & Wink, our clients’ uncertainties about their financial futures are ultimately replaced by fresh optimism. We can navigate the legal landscape for you to make sure that – no matter what your past has looked like – your prospects for a new phase of life are far more stable.
Schedule a free consultation with our team at (303) 410-1720, or send us a message online. We look forward to finding the least expensive, most efficient way to resolve your financial challenges through debt settlement or our bankruptcy options.