When you feel as if you’re in grave financial trouble it is not uncommon to begin thinking of solutions to resolve the problem. Some of the most commonly discussed methods for ridding yourself of debt are debt consolidation or filing for bankruptcy. While both options have their pros and cons, many might be surprised to find out that there are some instances in which filing for bankruptcy is a better option than Debt Consolidation Dayton Ohio.
Understanding Debt Consolidation
Having a better understanding of how the process works can aid you in making the most efficient decision. When you decide to consolidate all of your debts you gather all of your bills and start making one payment to the consolidation company. The company will deduct their service fees and then will utilize the rest of the funds to satisfy the outstanding debts. Depending upon what you owe this could take several years while late fees, interest rates, and collection efforts continue to pile up.
Bankruptcy
Filing for bankruptcy, in most cases, is better because you are considered protected from any further collection activities. Filing for bankruptcy is also a faster process than debt consolidation. Creditors do not have a choice of agreeing to a settlement, and your assets are protected once you file. If any debts do survive the bankruptcy they will be minimal and repayment options will also be more flexible. Since some debts will be considered “forgiven” you can utilize those funds to pay off the debts that did not pass and still need to be paid, thus getting your credit rating back in good standing before too long.
Working with an attorney to determine what your financial standing is currently and whether or not you should consider filing for bankruptcy or Debt Consolidation Dayton Ohio is your best option. You don’t want to remain idle, allowing the debts to pile up as this will create a deeper financial hardship which can be hard to dig out of. Weighing all your options with the help of a legal professional that is aware of Ohio bankruptcy and debt laws is ideal for making a serious financial decision for your future. For more information on how bankruptcy and debt consolidation will work for your personal finances, visit Domain.
