Find Relief Today with Debt Restructuring Attorneys in Lisle, IL

Debt can start out small but soon become altogether unmanageable. When the debt starts to overwhelm your available finances, falling behind on payments is inevitable. Once you fall behind on payments, that is when collection agencies start calling nonstop, and credit scores can take a big hit. The good news is that there may be options available to help you get back on track. From bankruptcy to consolidation, there are several common ways to fight back against overwhelming debt. With the guidance of debt restructuring lawyers in Lisle, IL, it may be possible to overcome debt through certain legal actions.

What is Debt Restructuring?

Debt restructuring is a process where a person attempts to lower the amount they owe to creditors through a series of actions. It can occur with any amount of debt but usually happens when the debt is substantial, and the person can no longer afford the original payment amount. While it is possible to attempt to reason with creditors on your own, it is usually better to have legal counsel on your side during the process. Debt restructuring lawyers have experience and knowledge when it comes to legal avenues for reducing or restructuring debt, negotiating with third parties to reach an agreement, and dealing with the necessary documents. Here are a few common ways your debt restructuring lawyer may suggest tackling your debt:

• Consolidating loans. It may be easier to manage debt if all of the loans are consolidated into one loan. This may also be helpful since an attorney may be able to negotiate for a lower interest rate on the consolidated loan.
• Refinancing for lower interest. If consolidation is not a viable option, it may still be possible to ask for lower interest rates through refinancing, which will help lower how much you pay over time.
• Liquidating assets to pay debts. A debt restructuring lawyer may suggest liquidating other assets, such as properties and vehicles, in order to pay down existing debt. This is one of the easiest ways to get rid of debt.
• Negotiating on your behalf. Your debt restructuring lawyer may be able to negotiate on your behalf to restructure debts in other ways. Since every financial situation is unique, there may be other options available to you.

Do I Need to File for Bankruptcy?

While bankruptcy may be a smart move for some people, it is not right for every person and every financial scenario. If you want to avoid filing for bankruptcy due to the social stigma or impact it will have on your credit, there are other options available for restructuring your debts with the help of an experienced attorney. It is worth considering bankruptcy if you have substantial debt and your income will not allow you to pay it down, or the creditor refuses to work with you on negotiations. Bankruptcy does not forgive or remove all debts, but it can be used as a way to force a creditor to either discharge the debt completely or work with you on an installment plan. Like any major legal decision, you should discuss the benefits and setbacks of filing for bankruptcy with a debt restructuring lawyer prior to starting the process. Even if you are sure filing for bankruptcy is right for you, an attorney will be able to help determine the right chapter to file under for the best financial future.

Can a Debt Restructuring Lawyer Help My Business?

Debt restructuring is not just for individuals–it can also be useful for businesses. If your business is struggling with debts, it may be possible to try many of the same debt restructuring strategies used for individuals. There may even be options available to a business that are not possible for individuals. A knowledgeable debt restructuring lawyer will be able to help your business get ahead of debt before it is too late. It is important to address debt sooner rather than later in a business. Many business owners hope things will turn around with the next quarter or next big success, but too many companies end up going under financially from not managing debt early on. Speaking with a debt restructuring lawyer at the first sign of trouble may just save your business for years to come.

What is a Hardship Letter?

A hardship letter is a tactic used when a person has experienced a personal hardship that explains or justifies an inability to make payments on their debt. Hardship letters are presented to creditors and collection agencies in hopes of inspiring compassion, so they will work with you on restructuring the debt as requested. Hardship letters should be used for matters such as losing your main source of income, illness, or hospitalization rendering it impossible to earn an income, or other such hardships. While more commonly used by individuals, a business may also be able to write a hardship letter to its creditors as part of its request for leniency on debts. A debt relief lawyer will be able to assist you in writing the letter to ensure it sounds professional yet personal. It is important to keep in mind that a hardship letter should be submitted alongside factual documents to support the claims of hardship, such as bank statements, hospital bills, or other related documents of importance.

Find Solutions Today

Dealing with debt is always stressful. From the constant phone calls to the way, it impacts all areas of life, being in debt only makes matters worse. When it is time to take control, reaching out to a compassionate and knowledgeable debt restructuring lawyer may be the first step. Our team is ready to work with you and for you to find the right solutions based on the situation. Contact us today at (708) 575-1500 to get started with a free consultation. We are always happy to help you win your next legal battle.