Denver’s Wink and Wink Can Help You with All Your Debt Relief Needs
Handling finances isn’t always easy, and being blindsided by having to take on more debt just to get by happens more often than you think. When you notice that you have more debt than income, and you’re struggling to make payments, it’s probably time to learn more about filing for bankruptcy or debt settlement.
These two processes are quite different, and, depending on your situation, one may be better for you. To help figure out which you should pursue, let’s explore the differences between bankruptcy and debt settlement proceedings. Then, let Wink and Wink, debt relief lawyers serving Broomfield, Lakewood, Westminster, Englewood, Thornton, Denver, and the surrounding areas, help you out of your financial puzzle.
What is Bankruptcy?
Bankruptcy is a legal process that helps to get you out of certain types of debt when you cannot repay it. Most people who file for bankruptcy in Denver keep everything they own, and have to repay very little to their creditors.
There are multiple types of bankruptcy, and which you file for depends on things like your household income, the assets you own, and the type and amount of debt you’ve accumulated over the years. The two main types of bankruptcy are:
- Chapter 7 Bankruptcy, or “straight” bankruptcy, resolves unsecured debts, like credit cards and medical bills.
- Chapter 13 Bankruptcy, sometimes called a “reorganization” bankruptcy, requires that you pay back some of your debt, but absolves you of unsecured debts. You generally get to keep your assets in this type of bankruptcy.
What Happens When You File for Bankruptcy?
Declaring bankruptcy doesn’t occur overnight. It can be a lengthy legal process, which you will find to be totally worth it when, by the end, you are free from oppressive amounts of debt, thanks to expert bankruptcy attorneys in the Denver, Colorado area, like Wink and Wink.
Your first step in filing for bankruptcy is to call Wink and Wink for a free consultation. After you retain our services, begin referring your creditors to us and filling out documents that we’ll provide to you as you begin the bankruptcy process.
Mike or Gigi Wink will prepare your case and meet with you to review every piece of paperwork and information before filing for bankruptcy on your behalf. Four to six weeks later, you’ll attend a meeting of creditors to process your bankruptcy filings. During the meeting of creditors, you’ll go in front of a bankruptcy trustee and answer questions under oath. Don’t worry – your legal team at Wink and Wink will always ensure you’ll be well-prepared!
If you are pursuing Chapter 7 bankruptcy, your case could close within six months. While your creditors may make objections to your bankruptcy filing, this is extremely rare.
Chapter 13 bankruptcy takes longer to complete; you’ll be required to make on-time plan payments for up to five years before your bankruptcy case closes. The trustee and creditors usually file objections to your plan – which is why having the best bankruptcy lawyers near you can ensure these objections are quickly resolved so you can continue working to be debt-free.
While your bankruptcy is in the works, you are required to complete a financial management course, either in person or online. Once your Chapter 7 bankruptcy or Chapter 13 bankruptcy processes are complete, including you making any required payments, you’ll receive a discharge, which indicates you are officially out of debt!
What is Debt Settlement?
For most people in Aurora, Arvada, or Littleton, bankruptcy is the most cost-effective form of seeking debt relief. However, it isn’t for everyone. If you own significant property that is not protected in bankruptcy, or if you have a higher household income, you may still have to repay much – or all – of your debt in the bankruptcy process. If you fit these criteria, pursuing debt settlement is likely the better option for you.
During debt settlement, your legal representation at Wink and Wink will directly negotiate with your creditors to resolve outstanding balances you owe to them. Most creditors, including credit card lenders, will accept a fraction of the balance owed and declare your debt settled. Others are more difficult to negotiate with, but that’s why it’s important to hire experienced debt-relief attorneys who work for you to get the best possible settlements.
Not all debts are eligible for settlement. Unsecured debts, like credit card payments or medical bills, can be settled, but your mortgage, auto loan, or other secured debt usually won’t be settled without you losing the property attached to it. Unsecured debts like student loans can be difficult to settle, and other debts you owe the government – like taxes – require a special procedure to reach settlement.
What Happens When You Pursue Debt Settlement?
When you ask Wink and Wink to help you settle your debt, we will contact your creditors to help lower the amount you owe to each of them. To qualify for the debt settlement process, however, you must:
- Be in default and not actively paying back your debt. If you have been paying your creditors back faithfully each month, even if your debt is overwhelming, they aren’t going to want to negotiate to lower your debt because they know they are collecting money from you.
- Pay back debt in lump sums to get a settlement. While you won’t have to pay 100 percent of the money you owe your creditor, you will have to pay some, which means if you can pay in cash up front, you are more likely to get a better deal in terms of paying back only a small fraction of your debt. If you have to settle for a payment plan, you risk defaulting; if you default on a settlement payment, you risk having your balance owed revert back to its original amount, plus interest.
Is Bankruptcy or Debt Settlement Better for Me?
Whether bankruptcy or debt settlement is better for you is a difficult question that cannot be answered in a simple, straightforward manner without a thorough understanding of the types of debts you’ve accumulated and are looking to have removed or settled.
If you have mostly unsecured debts, debt settlement may help you greatly. If you owe some very important secured debts – like a mortgage – filing for bankruptcy may be better. What is best varies on a case-by-case basis.
Where Can I Find Help with Debt in the Denver, Colorado Area?
To get a more clear answer to your question about whether bankruptcy or debt settlement will help you the most, your best bet is to request a free bankruptcy or debt settlement consultation from Wink and Wink, Denver’s bankruptcy attorneys.
Mike and Gigi Wink have decades of experience with putting a stop to harassing phone calls from your creditors, halting your foreclosure proceedings, and wiping out your debt for good.
Contact us so we can review your situation and start helping you get free from the debts that have been holding you back.