Are you overwhelmed with debt and considering filing for bankruptcy?

Understanding Secured Debt vs. Unsecured Debt

Before you file for bankruptcy, you must ask yourself one important question:

Is any of the debt I owe secured?

Is any of your debt tied to some personal property or collateral, like your home, car, business, or something else of value that you pledged when you borrowed the money, or the credit?

If so, then if you default (fail to pay back the loan or line of credit), your creditor can use the legal system to take your property to satisfy the loan or any portion of it. That means they could take your home, business, car or some other thing of value. Here is where you may need bankruptcy protection.

If the debt is not secured by collateral, then it is unsecured debt.

If the debt is not secured by collateral, then it is unsecured. If this is the case, you may want to reconsider the bankruptcy and take a less drastic debt settlement approach.

Credit cards, payday loans, and other personal loans are all unsecured debt and have no collateral associated with them, only your promise to pay. This debt can be settled for much less than you owe.

What Debt Settlement Solutions Are Available?

Depending on your circumstances, there may be a range of potential options to settle your outstanding debt:

• Minimum payments: If your finances allow you to do so, you could continue making minimum monthly payments on your debt. However, this approach could mean it would take decades to become debt-free.
• Debt management program: You could also enter a debt resolution program to pay the total amount you owe over a period of years, making monthly payments and paying fees to a credit counseling firm to disburse your funds for you.
• Consolidation: You might take out a debt consolidation loan to repay your creditors. However, you will still owe the same amount of money, just to one lender rather than multiple creditors.
• Negotiation: Another option is to work with an experienced attorney to negotiate what you owe. With this type of settlement approach for your outstanding debt, you can reduce the outstanding principal, which can help you get out of debt faster.
• Bankruptcy: In some cases, bankruptcy may be the best option. That said, it should be considered as a last resort after you have explored and eliminated other possible solutions to resolving your debt.

Because of the Covid-19 epidemic, many people lost their jobs and had to depend on their credit cards for just about everything to support their families, from food, diapers, clothing, and other everyday necessities such as paying for their water and electricity bills.

This epidemic has cost us much. You don’t have to let this crisis continue to create unnecessary stress in your life.

 Trust DeTata Law Group for Debt Settlement in Florida

The attorneys at DeTata Law Group specialize in helping clients find their way out of debt and regain control over their finances, providing valuable peace of mind in the process. As trusted Florida debt settlement negotiation attorneys, we understand the heavy burden and toll debt can take, and we are committed to helping free you from its shackles.

If you can no longer make your credit card or other unsecured debt payments, then you owe it to yourself and your family to give us a call for some guidance and direction so that we can help you can resolve your debt in a manner that best suits you. 

Call DeTata Law Group today and let us show you how we can settle your debt and put you back in control and in a much better place.

Contact us online or call us today.