Refinancing vs. Bankruptcy

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Refinancing vs. Bankruptcy

Charlotte Bankruptcy Attorney

The main goal of refinancing a loan is to make your payments affordable again so that you can keep your home, vehicle or other asset pledged as collateral for the loan. The loan workout process can be confusing, so having our experienced attorney from Schwilm Law Firm, PLLC on your side can make all the difference in your outcome. We use our years of experience and practical knowledge to negotiate persuasively on your behalf. We are aggressive advocates who are determined to secure positive results.

What are the benefits of refinancing?

If you are struggling to pay your mortgage, car loan or other debt due to a significant financial hardship, our Charlotte bankruptcy lawyer can negotiate on your behalf with your lender to modify the terms of your loan, including a:

  • Lower interest rate
  • Loan re-amortization to include any past-due payments
  • Waiver of interest and fees
  • Loan balance reduction
  • Fixed interest rate, if it is adjustable
  • Lower total payment

If you have one loan that is the primary cause of your financial troubles, we can help you seek a modification. If you have several loans that need to be modified, we can help you with a debt consolidation plan.

When is refinancing a better option than filing bankruptcy?

Most refinancing situations occur when dealing with a mortgage loan. Refinancing or seeking a mortgage loan modification includes the following potential benefits:

  • Offers affordable mortgage payments
  • Saves your home
  • Aids in improving your credit report

If you are choosing between bankruptcy and refinancing, our firm can assist you in making your decision.

What are the guidelines or strategies to follow when refinancing?

The main factor to consider in deciding whether to refinance a loan is how long it takes to recoup your costs. You should weigh your monthly savings against any up-front costs. If you can save $100 a month on your mortgage payment by refinancing, but you have to pay $2,500 for the loan modification, then you have to keep the new loan for at least 25 months to make up the difference. If you do not intend to keep the loan this long, refinancing does not make sense. Our attorney at Schwilm Law Firm, PLLC can review your individual circumstances and help ensure that you make a sound financial decision.

Contact Our Charlotte Bankruptcy Law Firm

If you need help deciding what debt relief option is the most advantageous for you and your family, contact Schwilm Law Firm, PLLC online or by calling 704.567.5252 for your free initial consultation. We are proud to serve the Greater Charlotte Area and offer convenient parking at our office.