Understanding Lump Sum Repayments
Bankruptcy allows debtors an alternative method to repay some or all of the money that they owe to creditors. This repayment can be done in a variety of ways. While some debtors choose to create repayment plans that extend over a longer period of time, there are other options available that may allow a debtor to pay off their debt in one lump sum. Depending on the debt relief approach a person takes and their financial situation, this may be a potential option and can be beneficial as it allows a person to not have to worry about interest or other issues.
Lump Sum Repayment Possibilities
For many debtors, a lump sum repayment is not possible. However, there are a few circumstances in which a debtor may be able to make such a payment. These include:
- The debtor going through debt negotiation, in which an attorney negotiates with a creditor to lower the amount owed to a level that the debtor can pay back all at once.
- The debtor has filed for Chapter 7 bankruptcy and has gone through the entire process, including liquidating any possible assets (if this action is taken) and filed all possible exemptions, leaving them with an amount of debt which they can pay back in one sum.
In many cases, making a lump sum repayment is beneficial; however, it’s not always possible and is something which should be discussed with a knowledgeable legal professional first.
Bankruptcy can be a difficult process if you are unsure which form of repayment is best for you. However, if you believe that a lump sum repayment may be the best option for you, then the attorneys of Russell Van Beustring P.C. can help you learn whether this is a viable option. Call 713-973-6650 to learn more about how we can help you alleviate your debts.