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If you feel there is no hope of paying back your unsecured debt, like credit cards, medical bills, or personal loans during the next five years, you may want to find ways to get debt relief.

Debt relief through bankruptcy

A good strategy is to talk with a bankruptcy lawyer before proceeding to any debt relief plans. In general, the initial consultation is free, and then if things didn't work, you could choose another option.

The most common form of personal bankruptcy is Chapter 7 liquidation. This type of bankruptcy may relieve you from paying your credit card debt, unsecured personal loans, and medical debt. This path can take from four to six months to eliminate your eligible unsecured debt.

Relief Through Debt Management Plans

Through this option, you can fully pay your unsecured debts, typically credit cards, with a lower interest rate or without fees. Each month you make one payment to a debt relief agency that disperses the funds between your creditors. Both credit counselors and credit card companies maintain long-term agreements to help debt management clients.

Some of these plans require a small processing fee every month, plus some upfront set up fees. If you fail to keep up with the payments you will still owe all of your debt. Generally, your credit card accounts will be closed, and as a result, you need to live without credit cards until you complete the entire plan.

Relief Through Debt Settlement

Debt settlement companies may ask you to pause paying your creditors, as an alternative the money is placed in an account where the debt agency can control it. Every creditor is contacted and informed that your money is gathering in your account to pay your debt. This often causes you to fall more behind on your payments. The reality of potential getting nothing encourages the creditors to agree on a lower offer. Sometimes the creditors get tired of waiting and will sue you for the balance of your debt anyways.

Contacting a Roseville bankruptcy attorney will give you the answers you need to see if bankruptcy is a good option for you to get financial relief.