Philadelphia Bankruptcy Attorney: Do I Need Debt Relief or Bankruptcy?
The financial situation of an individual or an organization does not remain the same way for years. Sometimes, it gets better, and at other times, there could be a downturn leading to subsequent debt. The reasons behind debt can be many like unemployment, a sudden change in market trends, overspending and so on.
However, once you are in debt, the best way is to get out of the situation before it goes out of your hands. And in doing so, understanding bankruptcy and debt relief programs are of paramount significance.
The Difference between Debt Relief and Bankruptcy
Both debt relief and bankruptcy are intended to relieve you of your debts and prevent your financial situation from worsening. However, they work in different ways. Debt relief is about the reorganization of your debts in any shape or form that ultimately provides you with full or partial measure of relief. Bankruptcy, on the other hand, is a measure taken to stop the creditors from further pursuing you for the repayment of debts.
Both debt relief programs and bankruptcy have their share of advantages and disadvantages. To understand which process suits your situation the best, it is important to have a detailed look at the pros and cons of each.
Debt Relief: Positive and Negative Sides
A debt relief program is basically a plan that aims to reorganize your debts. It can take several forms, for example reducing the outstanding principal amount, lowering the interest rate on loans and so on. Debt relief has the following advantages:
That being said, debt relief programs can make you suffer the following negative consequences as well:
Bankruptcy: Positive and Negative Sides
Bankruptcy is certainly a full-proof way of managing your debts in spite of it involving complex legal procedures, best handled by the Philadelphia bankruptcy lawyers. So, here are some of the advantages of bankruptcy for you:
While bankruptcy helps you in more than one ways, it does have consequences like:
However, it is with respect to finding out whether you qualify, and what’s the best course of action, that you should always seek the guidance of a bankruptcy attorney in Philadelphia.
As you can tell, bankruptcy laws are complicated. Your case will depend on the state laws, your income, what kind of loans you have and so forth. So if you’re looking to consult a bankruptcy attorney in Philadelphia, give us a call at 215-735-1060 or fill out our online contact form to book your free consultation today.
We are a debt relief agency that helps people
seek bankruptcy protection under federal law