Debt Restructuring Pros and Cons
Debt restructuring is a very important element for financial survival. Let’s review some of the pro’s and con’s. Read on to learn more.
This can be achieved in many ways. But it means settling debt through a program of debt management with a reduction on the debt amount and/or interest. Debt restructuring is of course also part of Chapter 13 bankruptcy.
- If your accounts were late and you were receiving collection calls, these calls will terminate once your plan is underway.
- With the bankruptcy and/or debt management plan, you will be listed as current on your payments.
- Be goal focused. You have a date you can circle on a calendar to see you getting closer to the target.
- When declaring bankruptcy, it will be on your credit report for up to 10 years.
- You will lose access to credit cards.
- Bankruptcy can come with high legal and court fees.
Difference Between Debt Restructuring And Debt Consolidation
A common method of debt consolidation tackles your debts with high rates of increase. it is worth exploring this option before undertaking debt restructure. With debt consolidation, you obtain a personal loan equal to the current debt amount. The newer loan has an interest rate that is lower. This means you will have one loan and one payment to handle. It is a good idea for those still maintaining reasonable credit. When you have credit that is not so great, a debt consolidation may not be the optimum option.
Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale
Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business Bankruptcy, Chapter 7 Bankruptcy, Creditor Representation, Chapter 5 Claims, Chapter 13 Bankruptcy, Business Restructuring, Chapter 11 Bankruptcy, and more.
*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.