Restructuring and converting debt to obtain better terms
Debt consolidation can be a powerful tool if done correctly. However, simply moving debt around from one lender to another rarely has any substantial effect. Moreover, debt consolidation can affect your position should you later decide to file for bankruptcy. As a comprehensive debt relief practice in Encino and Van Nuys, the Law Offices of Michael H. Raichelson can help you get the most out of debt consolidation. Our attorneys can help you identify your troublesome debts and refinance or consolidate those accounts to obtain more favorable lending terms.
How does real debt consolidation help?
Effective debt consolidation in Sherman Oaks and Northridge requires knowledgeable guidance. An experienced Woodland Hills debt consolidation lawyer can help you use this process toward several ends:
- Converting high-interest unsecured debt — especially credit card debt — to lower interest secured debt can substantially decrease your payments and allow you to pay it off faster.
- In a competitive market, when your current lender is unwilling to offer loan modification, reconsolidating with a new lender may yield more favorable terms.
- If you are operating on a tight budget, even changing the monthly due dates for your bills by reconsolidating can help you avoid future default.
In these ways, debt consolidation can offer a viable alternative to bankruptcy for people and businesses with mild to moderate debt problems. Those with more serious debt problems, however, may still need to consider Chapter 7 or Chapter 13 bankruptcy.
Things to consider before consolidating debt
Debt consolidation can have some downsides. Converting unsecured debt to secured debt — such as through a home equity loan or second mortgage — potentially subjects your home to foreclosure should you default in the future. It may render such debt nondischargeable should you later find it necessary to file for Chapter 7 bankruptcy. Our Woodland Hills lawyers at the Law Offices of Michael H. Raichelson can help you understand and evaluate these risks in order to plot the best debt relief plan for your individual or business circumstances.
Contact our experienced debt relief attorneys today
While many agencies in Los Angeles and Ventura County claim to offer debt consolidation services, few approach it with the same thoroughness and strategic vision as our dedicated debt relief attorneys at the Law Offices of Michael H. Raichelson. Call our office today at 818-444-7770 or contact us online to schedule a no-cost consultation and review of your financial situation by an experienced lawyer.