We’ve written a series of blog posts answering common questions regarding bankruptcy. Call (262) 827-0375 for a FREE consultation

What to Expect from a Bankruptcy Firm

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If you are like many Americans, you may be struggling to make even minimum payments to a growing number of creditors. Depending on your particular circumstances, declaring Chapter 13 or Chapter 7 may not be your best option. If you are overwhelmed by your financial burdens, contact a qualified Milwaukee bankruptcy firm and educate yourself about your debt relief options with this guide to debt settlement:

Protect Your Credit

In the debt settlement process, your lawyer will negotiate with your creditors to reduce your overall debts in exchange for an agreed upon lump sum or installed payment plan. A successful settlement occurs when the creditor agrees to forgive a percentage of the total balance owed. While debt settlement will affect your credit, it is comparatively less harmful than bankruptcy.

Consolidate Your Debt

Do you owe different amounts to so many different creditors that you have trouble keeping track of your bills, let alone paying them? You are not alone: Americans racked up $48 billion in credit card debt in 2011 alone. If you are delinquent on multiple accounts, a debt settlement attorney can work with you and your creditors to consolidate your debt into a single low monthly payment. Whether you have credit card debt, medical debt, mortgage debt, business debt, or judgments against you, contact a debt settlement attorney to protect your rights.

Stop the Harassment

If you have outstanding bills, you are all too familiar with harassing phone calls and letters from lenders. When you hire a debt settlement lawyer, he will take control of all communications with your creditors. Your attorney knows which fees your creditors can legally charge and will ensure that they follow the letter of the law.

Burr Law Office is committed to helping our clients find efficient solutions to their debt problems. If you want to learn more about our Milwaukee bankruptcy firm and our affordable services, call (877) 891-1638 to schedule a consultation today. Milwaukee bankruptcy lawyers.

Bankruptcy Consequences: Skipping Payments

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Many people avoid filing despite increasing debt because they are afraid of how the process will affect their credit score and ability to rebuild their finances. However, not filing for bankruptcy with a lawyer when you no longer have the ability to pay your debts can have dire bankruptcy consequences.

Wage Garnishment

One of the first steps your creditors will take when you neglect to pay your debts is to garnish your wages. The maximum amount that can be garnished from you paycheck is usually 25 percent of your disposable income if it is greater than 290 dollars, or any amount greater than 30 times the federal minimum wage. While tips are generally not garnished, your wages, salaries, commissions, bonuses, and pensions can all be garnished until your debt is paid.

Liens and Levies

A lien refers to the legal claim over your property by the government or a specific creditor. A levy, on the other hand, refers to the actual seizure of property in order to satisfy a debt.  Individuals who fail to pay their debts without filing for bankruptcy may face one or both of these penalties. In the event that a levy is put in place, your creditor has the right to repossess and sell property that you own, such as your car or home—as well as property that is yours but held by another party, such as your bank accounts, retirement accounts, dividends, and even the cash value of your life insurance policy.

Foreclosure

Individuals who fail to pay their mortgage for a prolonged period of time may face foreclosure, a process in which the rights to your property are taken away and the property is sold in order to satisfy unpaid debts and liens.

Don’t let outstanding debts increase your risk of repossession, foreclosure, or other bankruptcy consequences . Get the legal representation you need by contacting the Burr Law Office at (262) 827-0375. You can also set up an FREE initial consultation by visiting us online.