Both Chapter 7 and Chapter 13 Bankruptcy provide a means for Oklahoma consumers to eliminate most unsecured debt. This includes, credit card debt, personal loan debt, and unpaid medical expenses. Also included is repossessions and foreclosure debt. Many Oklahoma consumers have steady employment but are simply unable to overcome credit card debt. Credit card debt is a burden shared by many Oklahoman’s, and it is often difficult to find a solution for. While filing bankruptcy enables you to eliminate credit card debt, there is one alternative. Some credit card-holders are turning to debt management programs (DMP).

If you are an Oklahoma consumer with credit card debt that you are having trouble managing a debt-management program may be an option. You should discuss all of your debt-elimination options with an Oklahoma Bankruptcy Attorney. If you decide a debt-management program is best the best way to eliminate your credit card debt that an option. But you should thoroughly research the various types of debt-management agencies. This includes reading reviews of the company. As with most things in our world today, there will always be some debt-management agencies that are not legitimate. Countless internet complaints are out there warning of those trying to take advantage of consumers. However, there are also some legitimate agencies that will help you eliminate your credit card debt. More often than not, a legitimate debt-management agency will be a not-for-profit institution.

Debt Management Programs:

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.  The agency directly distributes that payment to your creditors.

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 monthly fee to negotiate with your creditors. The negotiation is intended to lower your interest rates and decreasing your monthly payments. This arrangement will allow you to consolidate your credit card debt into one monthly payment. It may help you pay off the debt a little sooner. otherwise would.

Your Debt Management Options:

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 concerned 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.

Oklahoma Bankruptcy Attorney and Debt Reduction:

Our Oklahoma bankruptcy attorney can advise you on each and every option available to you. Whether it bankruptcy or debt reduction programs we can help.  Call for a free consultation with a bankruptcy attorney.