In Missouri, consumers review real solutions for high volumes of debt. They need a solution that can prevent legal action by their creditors and prevent serious financial loss. For some consumers, the legal action is repossession or foreclosure. Local attorneys offer a variety of solutions to help consumers achieve debt relief in St. Louis, MO.
Loan Modification Opportunities
A loan modification is available if the consumer was provided a loan when affordability wasn’t established. They can also acquire a modification when they would have received a lower interest rate. An attorney can also assist the consumer when they have suffered a job loss or sudden decrease in wages. The opportunities allow them to make smaller payments in some cases through a forbearance against the loan.
Settlement Offers from Creditors
When debts are about to enter collections, creditors are more likely to accept a settlement offer. This offer is based on a percentage of the total balance. For example, some creditors may accept the value of the original debt prior to finance charges and late fees. An attorney can negotiate a settlement that could in some instances equate to a 50% decrease in value.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is a process in which property and assets are sold to accumulate proceeds. The proceeds are distributed to the creditors through a court-appointed trustee. The consumer receives all exempted values from the assets after the debts are settled.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a repayment plan. It is based on a percentage of the overall debt for which monthly payments are submitted. The consumer must follow strict guidelines such as using their disposable income to settle additional debts. The process takes up to five years to complete. An automatic stay is applied that lasts throughout the case.
In Missouri, consumers examine solutions to become debt-free with an attorney. The attorney can show them extraordinary options for eliminating their debts such as loan modifications, settlements, and bankruptcy. Consumers who need to review the options for debt relief in St. Louis, MO with an attorney should visit Stlbankruptcyfirm.com for further instructions.