Are you having trouble making ends meet? If the bills are piling up, debt consolidation may be the solution. By reorganizing and consolidating your debts, you can deal with the financial crisis and put an end to your worries about home foreclosure, car repossession and creditor lawsuits.
What’s more, when you follow through with a debt consolidation plan, you may even be released from your obligation to pay all that you owe. Taking the reorganization route can be an effective strategy for reducing debt, as once the legal process is complete, any eligible debts that remain are erased. But to figure out if debt consolidation is your best option for getting out of financial hot water, you’ll need to learn more.
Debt consolidation is a way for people to reorganize their overwhelming debts into one affordable payment. In Salt Lake City and St. George, debt relief lawyers of the Law Office of Davis & Jones, P.C., create favorable consolidations that can relieve clients from burdensome debts and allow them to get payments that fit within their budgets. Our Taylorsville law firm helps people throughout eastern Utah, including Salt Lake, Tooele, Utah, Summit, Davis and Uintah counties. Our St. George office allows us to help people in Washington, Iron, Kane and Garfield counties
What is a Debt Consolidation?
A debt consolidation through Chapter 13 is not a loan but rather the process of restructuring, and in most cases reducing, debt to be repaid over three to five years. To file for a consolidation, a debtor must have a consistent source of income. A debtor's income and the type of debt owed will determine the monthly payment. A debt consolidation can cut the total amount of debt owed, in addition to eliminating additional interest and collection costs.
In a Chapter 13 debt consolidation, the a person's debt is organized into three categories:
- Secured debts: Debts with collateral such as a car loan or mortgage
- Priority debts: Debts designated by the bankruptcy code as a highpriority debt, including some tax debts, spousal support and child support payments
- Nonpriority Unsecured debts: Payday loans, credit cards, medical debts, apartment leases, and other debts without collateral
A debt consolidation will pay secured and priority debts first. For unsecured debts, a debtor only has to pay back what their budget will allow. A debtor may have their remaining debts eliminated after the debt consolidation repayment plan is complete.
Personalized Debt Consolidation Counsel
Our attorneys can review your unique situation in a free consultation and then give you an individualized plan for getting out of debt. We restructure and consolidate our clients' debts with Chapter 13 bankruptcy filings and guide them through the entire process. Our attorneys will create a realistic repayment plan that fits your lifestyle, based on your income, debts and assets.
Consolidating debts through Chapter 13 bankruptcy offers several advantages. By taking this approach to dealing with your financial troubles, you can:
- Stop home foreclosure
- Prevent car repossession
- Keep your valued assets
- End wage garnishments
- Deal with IRS tax liens
- Protect loan cosigners
- Discharge most unsecured debts
In addition, Chapter 13 bankruptcy provides you with protection from creditors. As soon as you file, an Automatic Stay goes into effect. That injunction acts as a Court Order with the power to put an end to creditor harassment. The phone calls, texts, emails, letters and harassment from creditors will automatically stop, providing you with peace of mind and a better quality of life. If a creditor continues to pester you for payment after you file for Chapter 13 bankruptcy, your attorney can help you hold them accountable with the court.
Talk to Our Experienced Lawyers Now
If you’ve been struggling to pay your bills every month, filing for Chapter 13 bankruptcy may be the best way to stabilize your financial situation. You have other options, however, and you should carefully consider every possible path out of debt before making any decisions.
The legal team at the Law Office of Davis & Jones, P.C., can supply you with the information and advice you need. Our debt relief attorneys have a thorough understanding of state and federal bankruptcy law, and we’ve helped more than 20,000 Utah residents get a fresh financial start. With our decades of experience, we’ve become experts in reorganizing, consolidating and reducing debt through Chapter 13 bankruptcy filings – and we can create a strategy to suit your specific situation.
We’re not like many other Salt Lake City or St. George area law firms – with us, you’ll always meet with an experienced lawyer to discuss your bankruptcy case. We know you’re looking for personalized legal advice from a qualified bankruptcy attorney, not a legal assistant, and that’s what we provide.
Would you like a debt relief expert to help you formulate a plan to regain control of your finances? Turn to the Law Office of Davis & Jones, P.C., and you can get the assistance you want with fees that are fair. Our lawyers offer complimentary consultations to Utah residents, and we’d be happy to discuss whether debt consolidation is right for you.
We can review your case details and answer your questions in a free consultation. Schedule your free consultation at our law firm by calling 801-261-2244 or using the contact form.
We are a federally designated debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.