Best debt relief service in New York

If you’re looking for a debt repayment or debt negotiation service because you’re buried in bills, don’t make your final decision without also talking to a bankruptcy attorney. This is because, by law, someone who is not an attorney can’t explain how bankruptcy works, and compare it to a debt relief service. Here are some factors to consider:

• Your credit might take a worse hit. Debt relief results in late payments being posted, and in the short run these could tank your credit score more than filing for bankruptcy.

• Your credit may take longer to recover. Among other factors, lenders consider 1) your debt-to-credit ratio (the less you borrow against your limit, the better) and your history of late payments. In debt repayment plans, it can take a long to bring your debt ratio down to a reasonable level, and your late payments will stay on your credit report for seven years. Through bankruptcy, your unsecured debts and all your payment history is wiped off your credit report all at once.

• Your creditors don’t have to play ball. Whether a creditor agrees to negotiate a lower settlement or not is a business decision. When a debt is discharged in bankruptcy, there’s a legal obligation to write it off.

• Your payments could be even higher. Sometimes a creditor wants to get you caught up as part of a negotiation, which could result in higher monthly payments overall. Loans discharged in bankruptcy have no payments at all.

Debt repayment plans might be a better option for you than filing bankruptcy, but you can’t get all the facts without talking to an attorney. Call Selby Legal to get a free consultation about your debt situation.