Consumer Credit Information
Bankruptcy
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Before the concept of
bankruptcy, people who could not meet their
debt obligations would often face criminal
prosecution and jail time. Bankruptcy was
conceived to help people recover from
debilitating debt without having to face
criminal charges. Each year more than one
million Americans file for protection under
Federal Bankruptcy Laws.
Generally, they're average working individuals or families who have become overwhelmed trying to pay all of their bills. Falling into debt trouble can happen suddenly. The sudden loss of a job or income, mounting medical bills, a divorce or even a natural disaster can quickly wipe out a life's savings. For people who have suffered such misfortune, bankruptcy provides a second financial chance. However, a growing number of Americans file for bankruptcy not from bad luck, but rather because they have lost control of their spending habits or have willfully abused their credit. Regardless of why a consumer files for bankruptcy, it is a serious step with wide ranging implications that should never be taken lightly. Bankruptcy is a devastating mark on your credit report that can eliminate credit opportunities for up to ten years, making it difficult to rent a home and nearly impossible to find a reasonably priced mortgage. It should only be considered as a last resort. Lenders will often work out payment plans for people who continue to show good faith in attempting to pay their debts even though they may be financially embattled. If you are still drowning in debt after exhausting all possibilities of relief, here is what you need to know about the two common types of personal bankruptcy.
Chapter 7 bankruptcyAlso known as "straight bankruptcy," Chapter 7 bankruptcy allows a consumer to keep certain exempt property such as work equipment, and some money, clothing, and home equity. The specific items that are exempt will depend on where you live. The rest of your possessions and assets will be sold under the supervision of a federal court trustee. The money raised from the sale will be parceled out to various creditors. Once bankruptcy is declared, most creditors cannot seek further payment. However, this does not mean the person can skip out on all financial burdens. Court ordered alimony and child support, most taxes and, --under most conditions,-- student loans will remain after a Chapter 7 bankruptcy.
Chapter 13 bankruptcyAlso known as the "wage-earner's bankruptcy," Chapter 13 bankruptcy allows the debtor to keep his property and negotiate a three-to-five-year repayment program, which must be approved by the court trustee. This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
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How a Credit Counseling program works?
A credit & debt consolidation plan will allow you to manage your finances without a consolidation loan and without declaring bankruptcy! If you are having trouble meeting the minimum monthly payments on your bills, feel you are slipping further behind each month and need debt relief, let us go to work for you!
Consumer Credit Counseling & Debt Consolidation
Consolidation of credit card debts and unsecured loans makes rapid debt reduction possible. All members of professional and legal staff are trained in debt mediation with credit card companies and unsecured creditors. Why? ...Because a debt financed at 8% or lower is much easier to pay down than is a 22% credit card interest charge! In some cases, the negotiated interest charges on consolidated debts may be brought down to ...zero !
Budget and Credit Counseling Services
We provide professional budget planning and credit counseling. We carefully answer your financial questions and recommend steps to resolve your financial difficulties that may be preventing you from making the most out of your money and credit.
Why waste money on high interest creditors?
Save your financial resources for
yourself and your family! Credit Consolidation can take all of your
unsecured bills, negotiate with all of your creditors for new interest
charges and terms, making it possible for you to make a single monthly
payment towards satisfying your obligations – while allowing you to maintain
a comfortable household budget.
Non Profit Debt Consolidation
Creditors, looking to protect their debtors, will normally only work with non profit debt consolidation organizations. These IRS accredited 501(c)3 organizations are deal better with your creditors., so you know that you are getting the lowest cost debt consolidation option. These organizations will serve your interest, and they are set up to help you, not the creditors.
Many times, these non profit debt consolidation organizations have a pre negotiated rate with the creditors that is available to their clients. These rates will often reduce your monthly payments by 50%, and halve your interest rates. Because of compounded interest, these reduced interest rates can decrease the payment times from over 35 years for credit cards to under 5 years. Your payment time is reduced, even though you are paying less money each month!
These organizations are safer than for profit firms, because they aren't making money by exploiting you. There fees are linked to their costs, which allows them to help people like you without charging expensive fees.
To be contacted by a licensed consolidator, fill out the form above, and you will be contacted by a non profit debt consolidation organization. Take the first step towards financial independence, choose to let our debt consolidation organization help you.