When a person is faced with the mounting debts that they cannot pay, they may find that filing bankruptcy is unavoidable. Dealing with bankruptcy is not easy, and you may feel that there will be a permanent stain on your financial record. While this procedure will remain as part of your financial history, if you have the frame of mind that you will be dealing with bankruptcy well, this record does not need to haunt you. There are many who are experienced in dealing with bankruptcy, and have established or continued successful lives after filing.
After Bankruptcy Credit Solutions
When dealing with bankruptcy, it is important to make sure you are well-informed of the laws and the type of bankruptcy you are filing. You will need to know if your home or car will be protected or what other assets or yours may be vulnerable in the case. You will also need to ensure that you will not be harassed by creditors during your case, and finding a good bankruptcy lawyer will help you to defend yourself against additional claims.
You should hire a bankruptcy lawyer rather than going it alone. He or she will be aware of the process and will save you time and the money in the long run that might otherwise be wasted on expensive errors. Make sure that your bankruptcy lawyer has the right qualifications and specializes in bankruptcy. It is worthwhile to go to bankruptcy court and to view some cases so you will be prepared for what lies ahead. Going Bankrupt
Being overwhelmed with bills means living in constant stress. The bottom line is that sometimes life hands us circumstances that we simply can't conquer alone. Perhaps you have tried diligently to make a dent in those bills, but your current situation makes it impossible to see a light at the end of the tunnel. For many people, the idea of going bankrupt is their greatest fear. To some, going bankrupt means giving up, admitting defeat, and watching your credit dissolve into a hopeless mess. The truth is that going bankrupt doesn't mean you're a failure. In those types of situations, going bankrupt is often the best option. It allows you to have a clean slate, free from the hassles of creditors and the stress of rapidly mounting bills that seem to have no end. Going bankrupt means that you will be able to achieve relief from the hassles of debts and creditors. At the same time, you'll be rebuilding a new, clean credit history.
Many people worry that going bankrupt will mean they will no longer be able to get a credit card or a loan. The truth of the matter is that going bankrupt, in some cases, makes it easier to secure credit cards. Creditors realize that after going bankrupt, consumers are relieved of their extensive bills. If you're considering going bankrupt, it's best to consult with an attorney. Many lawyers offer free consultations to new clients. Take time to discuss your financial situation and find out if going bankrupt is your best option.
by Peter Wilson
Monday, January 29, 2007
Saturday, January 27, 2007
A Viable Alternative to Bankruptcy
If you're carrying thousands of dollars in credit card debt, struggling to pay the rent every month and getting calls from collections agencies, you might be considering bankruptcy. Yet for almost all circumstances, a good financial advisor will tell you that's the last thing you should do.
Once you declare bankruptcy, there are many unpleasant implications. Not only do you lose control of your assets and have your dignity taken away, but when the debt is finally paid off, it will be very difficult to obtain credit again. Bankruptcies remain on your credit report for 10 years.
Despite the negatives, there were 2,078,415 filings last year --- 2,039,214 among individuals, 39,201 by businesses according to the American Bankruptcy Institute. The numbers are expected to be a lot lower this year as a result of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, signed into law last year. The Act limits the scope of relief a filer will receive, as MOST debts have to be repaid to creditors. In most cases, Chapter 7 bankruptcy (full relief) has been eliminated and the individual will have to file for a Chapter 13. Yet Chapter 13 bankruptcies still make you pay back 100 percent of the principal.
So what are your alternatives? You can take out a debt consolidation loan, which is where you borrow a sum of money against your home and use the extra equity to repay old debts; but these often lead to more problems. Statistics show about 70 percent of people who choose this option end up in even deeper debt within two years.
Since Chapter 13 is a horrible option for almost everyone, a more viable option is debt settlement, the consumer equivalent of a business hiring a turn around specialist to help them settle their debts with creditors and get the company back on track.
"Any person owing credit card debt, or any other debt, has the legal right to negotiate with creditors; however, this practice takes time to master and certain skills to get the maximum benefit. It would be in your best interest to turn to the experts for help," says Jamie Greene of Debt Settlement of America, Inc., a company that has helped hundreds of people out of financial difficulty over the past 7 years.
Once they get involved, the company's negotiators will review your bills, create a plan, then negotiate with your creditors to obtain the best settlement possible (their settlement officers typically negotiate the debt down 60 percent), and work with you to determine an affordable low monthly payment to put towards your debt settlement fund.
Why choose Debt Settlement of America? They are the only company that does not charge any enrollment fees. Plus, the way they make money is when they save you money. Your risk is minimal with them. All of the other settlement companies charge up front for their services. Of course it is more difficult to get into their program as they are strict in whom they enroll. The only way to find out if you qualify is to go to their Web site.
Ready to get started on a road to recovery that won't leave a 10 year blemish on your credit report, log on to www.debt-settlement-america.com and fill out a quick form. A debt specialist will follow up with a free consultation..
Once you declare bankruptcy, there are many unpleasant implications. Not only do you lose control of your assets and have your dignity taken away, but when the debt is finally paid off, it will be very difficult to obtain credit again. Bankruptcies remain on your credit report for 10 years.
Despite the negatives, there were 2,078,415 filings last year --- 2,039,214 among individuals, 39,201 by businesses according to the American Bankruptcy Institute. The numbers are expected to be a lot lower this year as a result of The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, signed into law last year. The Act limits the scope of relief a filer will receive, as MOST debts have to be repaid to creditors. In most cases, Chapter 7 bankruptcy (full relief) has been eliminated and the individual will have to file for a Chapter 13. Yet Chapter 13 bankruptcies still make you pay back 100 percent of the principal.
So what are your alternatives? You can take out a debt consolidation loan, which is where you borrow a sum of money against your home and use the extra equity to repay old debts; but these often lead to more problems. Statistics show about 70 percent of people who choose this option end up in even deeper debt within two years.
Since Chapter 13 is a horrible option for almost everyone, a more viable option is debt settlement, the consumer equivalent of a business hiring a turn around specialist to help them settle their debts with creditors and get the company back on track.
"Any person owing credit card debt, or any other debt, has the legal right to negotiate with creditors; however, this practice takes time to master and certain skills to get the maximum benefit. It would be in your best interest to turn to the experts for help," says Jamie Greene of Debt Settlement of America, Inc., a company that has helped hundreds of people out of financial difficulty over the past 7 years.
Once they get involved, the company's negotiators will review your bills, create a plan, then negotiate with your creditors to obtain the best settlement possible (their settlement officers typically negotiate the debt down 60 percent), and work with you to determine an affordable low monthly payment to put towards your debt settlement fund.
Why choose Debt Settlement of America? They are the only company that does not charge any enrollment fees. Plus, the way they make money is when they save you money. Your risk is minimal with them. All of the other settlement companies charge up front for their services. Of course it is more difficult to get into their program as they are strict in whom they enroll. The only way to find out if you qualify is to go to their Web site.
Ready to get started on a road to recovery that won't leave a 10 year blemish on your credit report, log on to www.debt-settlement-america.com and fill out a quick form. A debt specialist will follow up with a free consultation..
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