Oklahoma Bankruptcy Attorney and Debt Management

Oklahoma Consumers – What You Should Know About Debt-Management Programs and Credit Card Debt

Both Chapter 7 and Chapter 13 Bankruptcy provide a means for Oklahoma consumers to eliminate most, if not all of their debt including, but not necessarily limited to, credit card debt, personal loan debt, and unpaid medical expenses. Many Oklahoma consumers have steady employment but are simply unable to overcome credit card debt that has plagued them for years. Credit card debt is a burden shared by many Oklahomans, and it is often difficult to find a solution that will allow them to successfully tackle their credit card debt and end the downward spiral that puts them into further debt. While filing for bankruptcy enables individuals to eliminate credit card debt, there is one alternative to bankruptcy that some Oklahoma credit card-holders are turning to in order to try and eliminate their credit card debt. This alternative is known as a debt-management program (DMP).

If you are an Oklahoma consumer and you have credit card debt that you are having trouble managing or eliminating, enrolling in a debt-management program may be an option for you, and you should consider discussing all of your debt-elimination options with an Oklahoma Bankruptcy Attorney. If you decide that a debt-management program is the best way for you to manage and eliminate your credit card debt, then you should thoroughly research the various types of debt-management agencies that are available to credit card debtors. As with most things in our world today, there will always be some debt-management agencies that are not legitimate and are only trying to take advantage of consumers. However, there are also some legitimate agencies that will help you eliminate your credit card debt in the most feasible way possible. More often than not, a legitimate debt-management agency will be a not-for-profit institution.

How Do Debt-Management Programs Work in Oklahoma?

Your Oklahoma bankruptcy attorney will tell you that if you enroll in a debt-management program, you will likely need to close the credit card accounts that you are seeking to pay off. Instead of making monthly payments to each of your creditors, you will be making one payment to a debt-management agency. That payment will then be distributed to your creditors directly from the agency. Some agencies provide consumers with a loan to pay off their credit card debt, so the monthly payments then go to pay off the loan. However, other agencies do not provide a loan, but instead charge a reasonable monthly fee to negotiate with your creditors, lowering your interest rates and decreasing your monthly payments. This arrangement will allow you to consolidate your credit card debt into one monthly payment, and pay off your credit card debt a little sooner than you otherwise would.

An Oklahoma Bankruptcy attorney will tell you that is important to remember that while some creditors will agree to participate in your debt-management program, many creditors will not agree to participate. In such cases, you will have to continue paying that credit card account separately or negotiate with that creditor directly to agree upon a reasonable repayment plan. Further, it is also important to ensure you are fully aware of the terms and conditions of your debt-management program. A qualified Oklahoma Bankruptcy Attorney can walk you through the entire process and ensure you understand all of your rights and obligations.

Once you have paid off all of your outstanding credit card balances, you might be able to reopen the credit card accounts by approval, but many consumers choose to avoid credit card use as much as possible, fearing that they may find themselves returning to the same downward spiral. As such, understanding how credit card debt impacts your life is a key factor to remember when deciding whether or not to reopen your existing credit card accounts. An Oklahoma bankruptcy attorney will advise that unlike in a bankruptcy where all your credit card debt is eliminated you will still have to be concernd about other creditors who refused to settle. In this case your credit score may cause others not extend credit to you at all. Moreover, the credit card company may still seek to collect the debt through garnishments etc.

Contact an Oklahoma Bankruptcy Attorneys About Debt Reduction:

Our Oklahoma bankruptcy attorney can advise you on each and every option available to you when it comes to bankruptcy or debt reduction programs in Oklahoma. Call for a free consultation with an Oklahoma bankruptcy attorney.

Oklahoma Bankruptcy Attorney and Debt Management

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