Leading bankruptcy lawyer Bryan Keenan founder of Bryan P. Keenan & Associates, PC in Pittsburgh, PA clarified the key differences between Chapter 7 bankruptcy and debt settlement programs. For more information please visit https://bryankeenanattorney.com
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Debt settlement, also known as debt relief or debt adjustment, involves promising a lender a large lump sum payment to resolve a debt for less than the original amount owed. This involves making a monthly payment to collect on the funds needed for a potential settlement over a prolonged period of time.
For more information please visit https://bryankeenanattorney.com
Debt settlement companies often leave people deeper in debt than they were when they started. Most debt settlement companies ask individuals to stop paying their debts to get creditors to negotiate and to collect the funds required for a settlement. This negatively impacts credit scores. According to the Federal Trade Commission (FTC), the success rate for debt settlement is generally less than 10%. Many clients begin seeking debt relief through these programs but end up facing lawsuits from their creditors.
Filing for bankruptcy is often the fastest way to get back on sound financial footing. In a Chapter 7 Bankruptcy, one can receive a discharge of debts in four months.
''When you are overwhelmed by debt you should consider consulting with a bankruptcy attorney to get a real assessment of where you stand financially,'' said The Founder of Bryan P. Keenan & Associates, PC, in Pittsburgh, PA.
He elaborated: "Bankruptcy attorneys are there to help guide you through the legal process of discharging your debts. They will review your present set of financial circumstances and determine whether or not it is in your best interest to seek bankruptcy relief. This may include filing for relief under Chapter 13 to pay what you can afford to pay on your debts.''
Keenan said: "The goal of a bankruptcy attorney is to seek out the best possible option to get rid of debt and put you on the path of re-establishing your credit.”
Debt settlement companies aren't always truthful to potential clients about the realities of declaring bankruptcy, particularly Chapter 7. ''It's important to note that when you are consulting with a debt settlement company you are speaking to a salesman, not a legal professional.''
"These sales tactics often prey on people's fear of bankruptcy and ignore the reality that their programs destroy people's credit and they’re success rate is poor." Generally, excluding cases that are dismissed or converted, individual debtors receive a discharge in more than 99 percent of Chapter 7 cases according to the US Bankruptcy Court.
He added: "Many will shy away from declaring bankruptcy because of fears or perceptions about what that entails. Yet, the one element a debt management sales pitch rarely addresses is that rebuilding a person's credit after Chapter 7 is relatively easy."
He said debt resolution under Chapter 7 should be seen positively as it only takes months to resolve, shortening the time frame for a person to bounce back financially. ''After your debt has been discharged under Chapter 7, you can begin rebuilding your credit.”
''Before deciding on what you believe is the best option to tackle your debt you should consult with an experienced bankruptcy attorney so that you can get an accurate assessment of your legal options to achieve debt relief'', Keenan concluded.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Bryan Keenan
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Organization: Bryan P. Keenan & Associates
Address: 993 Greentree Rd #101, Pittsburgh, PA 15220,
Phone: 412-922-5116
Website: https://bryankeenanattorney.com
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