Many attorneys offer debt relief plans. Is
there one that is right for you? If so, is debt relief really necessary? Get the
facts before you sign on to any debt relief plan.
You have probably heard the term debt relief in conjunction with other terms
such as bankruptcy, Chapter 7 or Chapter 13. In accordance with the terms of
these and similar plans debtors, with the help of attorneys, seeking legal
assistance with absolving or reorganizing debt. Debt relief can be especially
attractive if you are in danger of losing your house or your car.
Don't allow yourself to be coerced into a debt relief plan that is not
necessary for your situation. Although it may be initially embarrassing, get
financial advice from someone you trust. You may find that you can make your own
debt relief plan and save the attorney fees.
If you decide your best course of action involves formal/legal intervention,
make sure that you have a clear understanding of all attorney's fees and
responsibilities before you do anything. Also, make sure you understand which
debts will be included in the debt relief plan and which will not.
If the courts permit reorganization for debt relief, you will be assigned a
trustee to whom payments will be made. It will be necessary (without sharing too
much information) to let your employer know what you are planning. Your employer
will be responsible for deducting the monthly payments from your earnings as
well as for mailing said payments to the trustee. You should keep records of all
payments that are made on your behalf. Check your records against the periodic
statements that you will receive from the trustee. Address any discrepancies, in
writing, immediately.
Seeking debt relief can be quite demoralizing. Remember that this experience
has no reflection on your worth as an individual. It is also important to
remember as you work through your debt relief plan that you will reach the end.
Although your credit report and score will be impacted by the experience, you
can rebuild both with time.
