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Miami Debt Consolidation Lawyer

Florida Debt Consolidation Attorney Serving Clients in Miami

 Consumer debt affects the lives of thousands of Floridians every day. From seemingly insurmountable credit card debt to medical bills that are piling up, consumer debt can feel extremely overwhelming. When you are trying to figure out how to deal with your debt, you may be tempted by some of the debt consolidation ads you see on television or on the internet. Before you make any decisions, it is important to learn about the options that are available to you. An experienced Miami debt consolidation lawyer at Nowack & Olson, PLLC can speak with you today about your situation and can discuss your options with you.

Why Debt Consolidation in Miami May Not Be the Best Solution for Debt Relief

 When you are struggling with debt, promises from debt consolidation or debt relief companies can seem appealing. Many of these companies promise to help you get back on track with your finances while avoiding bankruptcy. However, using a debt consolidation company could end up hurting your financial situation more in the long run. An article in The Balance cites some of the following major cons of debt consolidation:

  • Debt consolidation plans usually cannot help you with secured debt, such as your mortgage payment or your auto loan;
  • You must stop using your credit cards (and other accounts) that become part of the debt consolidation plan;
  • You will need to have enough income to make the payments on the debt consolidation plan comfortably, or else you can end up losing more money in the long run if you ultimately end up filing for bankruptcy;
  • Your credit could take a bigger hit if you opt for debt consolidation but ultimately decide to file for bankruptcy;
  • Debt consolidation can come with significant interest and fees; and
  • Reduced amount of debt through debt consolidation may be considered taxable income by the IRS, similar to other types of forgiven debt (which does not include debt discharged through bankruptcy).

Even if a debt consolidation plan appears to work with your budget, it can cost you significantly more money in the long run. Other debt relief options may be better solutions.

Options for Debt Relief in Miami

 What kinds of debt relief options can consumer bankruptcy provide? Take a look at the examples below:

  • Discharge your debts: When you file for Chapter 7 bankruptcy, you may be eligible to have all of your debts discharged while keeping exempt property. The Florida exemptions are generous, especially when it comes to keeping the equity in your home. Once your debts are discharged, you will have a fresh start financially and can begin the process of rebuilding your credit without worrying about any more late payments or fees.
  • Reorganize your debts: If you are at risk of foreclosure, reorganizing your debts through Chapter 13 bankruptcy may allow you to get back on track with your mortgage payments and to repay other creditors through a payment plan. In Chapter 13 bankruptcy, payment plans usually last from three to five years, and once debtors complete the terms of the plan their remaining debts are discharged.

Contact a Miami Debt Consolidation Lawyer

 Facing a significant amount of debt can induce anxiety in anyone, but an experienced Miami debt consolidation lawyer can help. The advocates at Nowack & Olson, PLLC have been assisting consumers for years with debt options in South Florida. Contact us today to learn more about how we can assist you.

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