Debt Consolidation as an Alternative to Bankruptcy
Though we at the Russell Van Beustring P.C. know that bankruptcy can be a beneficial process for many people in Houston struggling with overwhelming amounts of debt, it’s not always the perfect answer. There are several potential alternatives to filing for bankruptcy, one of which is debt consolidation. With debt consolidation, a person essentially takes out another loan that covers their other loans, allowing all their payments to be consolidated into one that goes towards paying off the new loan. Typically, when a debtor is pursuing debt consolidation, there are two forms from which they can choose.
Two Types of Debt Consolidation
The type of debt consolidation you choose depends on whether you have a home or property that can act as equity. This is because the two forms of debt consolidation are:
- Debt consolidation that has security in equity in your home
- Debt consolidation that does not have equity in your home
In the case of the latter, your loan from your debt consolidation company will simply be more money than in the case of the former. This might mean a longer payback period or a higher monthly payment, depending on your particular agreement.
Contact a Bankruptcy Attorney in Houston
If you are struggling with debt, facing creditor harassment, and want to take action, an attorney from the Russell Van Beustring P.C. can help you explore your various options, including debt consolidation. Get in touch with us today by calling our office at 713-973-6650.