Denver Bankruptcy Law | Butler, Landrum & Pierce: Denver Bankruptcy Lawyers

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Bankruptcy Law Practice in Denver and the following areas

Debt Relief Options

Debt relief can take several forms, but some may end up hurting the debtor more than providing the much needed relief from the stress of living with debt overload.

Debt Settlement

A debt settlement is a negotiated agreement between the debtor and creditor, in which the creditor agrees to reduce the payments, interest or principal on a debt owed. If there are only one or two creditors involved, this may be a viable debt relief option.

This option, however, does not work effectively for the majority of debtors, because each creditor negotiates only their individual debt. If a debtor has multiple creditors (most do), chances are that the total overall payments on several negotiated settlements will exceed the debtors ability to pay all the combined payments together.

Bankruptcy offers a court enforced settlement, in which all debt is considered, and not just individual parts. This often results in a payment (Chapter 13), which is more beneficial to the debtor then individual settlements, or (Chapter 7) a complete discharge of the debt, in which the debtor gets complete relief for the debt owed.

Credit Counseling

Credit Counseling is another avenue which many debtors consider when seeking relief for an untenable debt load. Most credit counseling programs are set up by the creditors, with the creditors’ interest being a primary driver in the organization’s mission.

As a result, most solutions provided by these organizations benefit the credit counseling organization and the creditor more than the debtor. Living under one of these draconian plans does not offer the relief from the stress of payments, but rather extends the situation out for several years.

Bankruptcy Options

Bankruptcy offers a court enforced complete solution to debt overload, which works best for the majority of debtors. Chapter 13 allows debtors to retain certain property and continue making payments on the property, while Chapter 7 allows for complete discharge of the debt.

Every situation is different, and should be analyzed with the advice of an experienced attorney. To find out more about your individual situation contact us today.