One of the first questions I typically get in bankruptcy consultations is, “what do I do with the debt?” As with most things, the answer is “it depends.” It depends on the type of debt and your personal situation, but in general, the below are the options for most types of debts. When you decide to file for bankruptcy, we look at all of your debt and decide what the best course of action is for you.
- repay per the loan terms;
- default, knowing that you may have to weather the collections process (more to come in future blog posts);
- settle for less than full value (more to come in future blog posts);
- debt consolidation and debt management programs (more to come in future blog posts);
- loan modification and loss mitigation – especially for mortgages;
- deferments, forbearances, etc. – especially for student loans;
- discharge (wipe out) the debt in bankruptcy, or restructure it in bankruptcy.
A consultation with a bankruptcy attorney can shed light on the best options for your situation, and the pros and cons of each option. If you would like assistance with determining the best plan for you, we’re here to help. Simply click here or call (704) 377-4300 to speak to a member of our bankruptcy team.
Disclaimer: We are attorneys, but we are not your attorneys and this article does not create an attorney-client relationship. The information in this blog post is provided for general information purposes only, and may not reflect the current law in your jurisdiction. No information in this blog post should be construed or seen as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter.