Descriptions Of Three Services Bankruptcy Attorneys Can Provide

When credit card or medical bills are becoming too much to handle and people are finding it difficult to meet their important financial obligations each month, they may turn to help from bankruptcy attorneys in Portage for some relief. The bankruptcy attorneys can offer a few different options to their clients in order to best help the client while also establishing a solution that satisfies the demands of the other parties involved. Depending on each individual situation and the amount of debt to be negotiated, there are some alternatives available to the client that each have their own consequences.

Many people aren’t aware that bankruptcy attorneys in Portage can offer the chance to negotiate with creditors. This service is often tried before bankruptcy is filed and is done with the hope that bankruptcy will not be necessary. Successful negotiations will result in an agreement between the creditors and the debtors that can work to the advantage of both. Often there is a sum of money to be paid up front and then other payments are often lower than the original expected payments. Sometimes part of the debt is forgiven with the understanding that the rest will be paid in a consistent manner. The bankruptcy attorney will work toward the agreement and will explain all consequences to the client.

Another option that bankruptcy attorneys in Portage can offer is the Chapter 13 Bankruptcy. This plan is based on making payment arrangements in order for the client to retain possession of some of their belongings, usually the home and any automobiles. The advantages to filing a Chapter 13 plan is that payments can be made over time and the creditors are not able to charge late fees and sometimes won’t be able to accumulate interest. This allows the client to pay off their debts without getting further and further behind.

 A third option is the Chapter 7 Bankruptcy plan. This may be called a “straight bankruptcy” and does not include any arrangements for repayment of debts. Clients sometimes hope to qualify for a Chapter 7 plan because it can be wrapped up within a few months and the resulting attorney fees are less than with other plans. In some cases, clients are able to retain possession of their home and in other cases, they will not be able to stay. The bankruptcy attorneys in Portage will explain any advantages or disadvantages to their clients.