Whether you choose to hire a bankruptcy attorney or a credit counselor, either one can help you in times of financial distress. Without a doubt, todays global financial crisis has inflicted much strain on individuals experiencing financial trouble. Many have found themselves going through legal proceedings without the proper knowledge of what they are actually facing. You must understand that bankruptcy and credit counseling work very differently and it is important to be acquainted with both before choosing a financial solution.
Credit Counseling
Basically, credit counselors work for credit counseling firms or companies who seek to negotiate and deal with your creditors. If you are in need of professional help as to how you can pay off your outstanding debts, you can seek the help of a credit counselor. This professional gives you essential pointers as to how you can manage your debts and finances efficiently and accordingly. A credit counselor can create a payment scheme based on your financial status and propose the plan to your creditors. The counselor can even negotiate with the creditors on your behalf about having your interest rates lowered and suggest other concessions. However, your creditors are not mandated to participate in a credit counseling option. Apparently, your creditors have the option whether they accept or reject the proposed payment scheme. Nevertheless, credit counseling services can still help you reestablish credit after the loans are paid.
Bankruptcy
Unlike credit counseling, bankruptcy clears your debts in most cases, and your creditors are mandated by law to participate in the legal proceedings. However, declaring bankruptcy would significantly affect your credit report and it puts you in the situation where your future loan applications can be rejected for up to 10 years. You may also have to surrender all properties and assets you own. This is why bankruptcy should not be taken lightly. It is in your best interest to seek professional help from a bankruptcy attorney. Your lawyer will help you identify the best bankruptcy option for you. He also helps in preparing all necessary documents, as well as stand for you during court proceedings.
Debts should not be disregarded in any way to avoid costly complications. If you think you are falling short on your payment scheme, you should look into different services to help you come up with a better plan to eliminate debt. Now that you know the difference between a bankruptcy attorney and a credit counselor, you should now recognize whom to call on in times of financial crisis.
Ed Lopez Law is a full service bankruptcy law firm serving the greater Los Angeles community and its neighboring cities. Located in the Wilshire District few miles from downtown Los Angeles, Ed Lopez Law is a California law firm offering effective and comprehensive strategies to help you understand the benefits of bankruptcy law. We offer our clientele exceptional service by taking advantage of the protection of bankruptcy law to help them start a fresh beginning. We take great pride in offering high quality service and personal attention to each of our client's particular circumstances which type of service is foreign to other bankruptcy practitioners. If you need help and be guaranteed that you will receive the proper solution to your financial difficulties, visit us @ http://www.edlopezlaw.com/.
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