If you’re having financial trouble, you’ve probably considered filing for bankruptcy or consolidating debts. But which one actually fits your needs? Both give you some much-needed financial relief but work entirely differently from one another. Learn more about these two options and how to choose the one that works best for you.
How Debt Consolidation Helps
Debt consolidation combines everything you owe into a single monthly payment. This system reduces interest rates, alleviates financial pressure, and helps you better manage your finances. All you need to worry about is meeting one simple deadline without worrying about anything else.
It works best for those who have a steady income and can realistically still pay what they owe without any issues.
What Bankruptcy Protection Does
Bankruptcy protection, on the other hand, protects you from collections, lawsuits, and wage garnishment. Chapter 7 bankruptcy wipes out most of your outstanding debts, while Chapter 13 restructures them so you can still make payments.
In either case, bankruptcy works best if you cannot make payments due to a job loss, medical condition, or any other life circumstance. It’s a long-term option that gives you a “clean” financial slate when keeping up with payments becomes impossible.
Which One Should You Choose?
Before deciding on the next step, assess your financial situation. If you still can make consistent payments, debt consolidation could be the right option for you. However, if you’re unable to make any payments, bankruptcy protection might be a better choice. Our lawyers at Todd Cushner and Associates can review your case and help you protect your assets. Contact us at (914) 600-5502 to schedule a free consultation with us today.
