Bankruptcy vs. Debt Consolidation

Are you having financial troubles? Every case is different but you may have another option outside of bankruptcy. Learn more about both options and what makes each one different. Our lawyers can help you make the right choice.

What is Bankruptcy?

Do you have a lot of debt? You might owe several people money, but there’s a solution to all your financial troubles. If you are too overwhelmed by debt and don’t think you can get out of it, bankruptcy is one solution. Bankruptcy is when a person declares that they aren’t able to pay their debts. These types of debts are usually high amounts you owe people.

However, if you file for bankruptcy, you will have to meet in front of a judge. The judge will help determine the payment schedule for the debts you owe. Some people get a legal bankruptcy discharge on some of their debts, while others can get a discharge on all of the debts they owe people.

It might be a good idea to talk this over with your lawyer before you consider something huge like bankruptcy. It will always be in your financial background whenever you buy a house or car. If you live in or around Kennewick, WA area, then consider Rodriguez Interiano Hanson & Rodgers as your bankruptcy lawyer, because we specialize in bankruptcy. With over 30 years of Law experience, we will take care of any concerns you might have with your finances.

If you have a business and you file bankruptcy, then you might have to close down your business due to high amounts of debt owed. However, some businesses are lucky enough to still continue but with lower payments paid off to the debtors that they owe money to.

What is Debt Consolidation

Debt consolidation is to help people with several high amounts of debt. Whether it’s credit card debts or other bills, debt consolidation is to create a single payment on your debt. Therefore, you can lower your interest payments by taking on one single loan to pay off all your debts. This way you can save money from all the interest rates over time to just one interest rate.

This way you don’t have to remember all the dates and places that you owe people. There aren’t several debts to be paid off because you only have one debt you owe money to. This can help can people who forget to pay people on certain dates or trying to manage several bills at once. It can get overwhelming for some people, and all those interest rates skyrockets altogether. Therefore, one payment can help people remember one monthly payment and lower all those interest rates to only one monthly payment.

Comparing Bankruptcy & Debt Consolidation

You shouldn’t do bankruptcy without thinking it over, because after you do it, you can’t undo it. Bankruptcy should be taken very seriously, so see if there’s a bankruptcy lawyer, such as the ones at Rodriguez Interiano Hanson & Rodgers. We can provide guidance on what kind of choices you have and which is best suited for your financial needs. If you aren’t able to pay off the monthly minimum payment that debt consolidation can offer, then bankruptcy might be your only solution.

So, why choose debt consolidation? Debt consolidation might end up making you pay out more in the long run, but it helps with your credit score. Having bankruptcy on your record can decrease your chances of getting other loans for houses, cars, or other things you might want for the future. This is why debt consolidation is so great because it doesn’t put a dent in your credit score as bankruptcy does. However, you should reach out to a bankruptcy lawyer if you are in doubt about your financial situation. They might offer you some much-needed advice on your particular financial troubles.  

Contact Rodriguez Interiano Hanson & Rodgers to find out if we are a fit for you. You might need a bankruptcy lawyer at your side during your financial troubles. We take care of our clients, so don’t hesitate to contact us with any questions you might have.